Академический Документы
Профессиональный Документы
Культура Документы
The general definition of an audit is an evaluation of a person, organization, system, process, enterprise, project or product.
Introduction
Cost audit is the audit of cost records. According to Chartered Institute of Management Accountants, London (CIMA), cost audit is the verification of the correctness of cost accounts and of the adherence to the cost accounting plan. In other words, cost audit is the verification of the cost of production of any product, service or activity on the basis of accounts maintained by an enterprise in accordance with the accepted principles of cost accounting.
Duties:
(a) whether adequate accounting records have been kept by the company and returns adequate for their audit have been received from branches not visited by him, and (b) Whether the company's individual accounts are in agreement with the accounting records and returns, and (c) In the case of a quoted company, whether the auditable part of the company's directors' remuneration report is in agreement with the accounting records and returns.
company conducted by the Chartered Accountants an essential annual feature of all the companies registered under the provisions of Companies Act, 1956. The Board of Directors of every company has a statutory obligation to place its audited annual accounts viz. Profit and Loss Account and Balance Sheet before the shareholders in the Annual General Meeting, duly certified by a Chartered Accountant appointed as an Auditor under the provisions of Section 224 of the Act. However, there is no corresponding statutory provision for compulsory annual audit of cost accounts of a company covered under Section 209(1)(d) of the Companies Act or under relevant Cost Accounting Records Rules.