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    Cost Audit

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    aryanrajvk
    This document provides an introduction to cost auditing and outlines its key advantages. It discusses the differences between financial audits and cost audits. Finally, it lists the important records that a cost auditor should examine, including materials, labor, overhead, depreciation, work-in-progress, and stores/spare parts records.

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    Cost Audit

    Uploaded by

    aryanrajvk
    232 views6 pages
    This document provides an introduction to cost auditing and outlines its key advantages. It discusses the differences between financial audits and cost audits. Finally, it lists the important records that a cost auditor should examine, including materials, labor, overhead, depreciation, work-in-progress, and stores/spare parts records.

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    This document provides an introduction to cost auditing and outlines its key advantages. It discusses the differences between financial audits and cost audits. Finally, it lists the important records that a cost auditor should examine, including materials, labor, overhead, depreciation, work-in-progress, and stores/spare parts records.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    232 views6 pages

    Cost Audit

    Uploaded by

    aryanrajvk
    This document provides an introduction to cost auditing and outlines its key advantages. It discusses the differences between financial audits and cost audits. Finally, it lists the important records that a cost auditor should examine, including materials, labor, overhead, depreciation, work-in-progress, and stores/spare parts records.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 6

    COST AUDIT

    MODULE LEADER :Prof. MAHESH R

    PREPARED BY :VIKASH KUMAR TRIPTI RAGHAV

    INTRODUCTION It is the detailed checking of the costing system, technique and accounts to verify their correctness and to ensure adherence to the objective of cost accountancy.

    ADVANTAGES
    1.

    2.

    3.

    4.
    5.

    TO THE MANAGEMENT Cost audit detects errors, frauds and misappropriation and hence enhances efficiency. TO THE SHAREHOLDERS Cost audit ensures that the valuation of closing stock and work-inprogress are correct, hence helps in the computation of more accurate profit figures. TO THE GOVERNMENT To curb the profiteering by the manufacturing concerns and help in the decision to provide tariff protection to any industry. TO THE CUSTOMERS Customers may obtain more benefit if the cost is reduced due to effective control, implemented as a result of a cost audit. TO THE FINANCIAL AUDITOR UNDER STATUE Cost accountants, who are employees of a company, obtain a share of all benefits derived by the company from a cost audit.

    Financial Audit vs Cost Audit

    Financial Audit is an audit which is based on Financial accounts where Cost Audit is an audit of cost accounting system and adherence to cost accounting plan. Financial Audit is carried out for every financial year ; whereas cost audit is conducted only when order by the Central Government in most cases.

    Financial Audit covers the entire operations of the business. Cost Audit lays emphasis on operations of the product under references. It is an efficiency and propriety audit.

    COST AUDIT PROGRAMME


    The Cost Auditor should pay his attention to the following records: Record of Materials Labour Records Record of Overhead Charges Depreciation Work-in-Progress Records Stores and Spare Parts Records

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