Cost Audit Programme

 

Cost Audit Programme






The auditor should  clearly understand the cost system in operation in the company concerned. The Companies Act has not laid down the procedure in which the cost audit is to be conducted and what the Cost Auditor is expected to do. It appears that it has been left to the discretion of the government or the company concerned to issue necessary instructions covering  these points in each individual case at the time of appointment of the cost auditor. The auditor should study these instructions if they have been issues.

The Cost Auditor should pay his attention to the following records:

>Records of Materials.

>Labor Records.

>Records of Overhead Charges.

>Work-in-Progress Records.

>Incomplete Contracts.

> Stores and Spare Parts Records.

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