COST AUDIT

ABOUT COST AUDIT

A cost audit is to review cost accounts and ensure compliance with cost accounting plans. A cost audit establishes the accuracy of cost accounting records to ensure that they are consistent with cost accounting policies, plans, procedures and objectives. Cost audits include:Verification of  cost accounting records, such as the accuracy of  cost accounts, cost reports, cost reports, cost data, and costing methodologies. Verification of these records for compliance with cost accounting policies, plans, procedures and objectives. to An expense audit, as the name suggests, is an audit of the records of expenses. It is designed to check cost accounts and ensure that cost accounting plans are being followed. Its purpose is to ensure that cost calculations are accurate and expose errors, fraud and misconduct in  existing systems. This is beneficial to society as it is often introduced to fix prices

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Frequently Asked Questions

  • What are the objectives of cost audit?

    Objectives of Cost Audit
    • Prospective Objective: Under which cost audit aims to identify the undue wastage or losses and ensure that costing system determines the correct and realistic cost of production.
    • Constructive Objectives: Cost audit provides useful information to the management regarding regulating production, economical method of operation, reducing cost of operation and reformulating  Cost accounting plans .

  • What are the types of tax audit?

  • What is the qualification for cost auditor?

  • Procedure of cost audit?

  • For which companies,cost audit is applicable?

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