Cost audit- Quiz to test your knowledge!
Cost audit is an independent examination of cost records and other related information of an entity including a non-profit entity, when such an examination is conducted with a view to expressing an opinion thereon as per CAAS 101.
Section 2(13)(iv) of the Companies Act 2013, contains the provisions relating to maintenance of cost accounting records and Section 148 of the Act contains the provisions relating to Cost Audit. Introducing statutory requirement of maintenance of cost accounting records and audit thereof as applicable by a qualified cost accountant, the Government has the objectives and reasons for ensuring that the companies keep proper records was to inculcate a culture of cost consciousness among industries for better resource management, to make the efficiency audit possible, and to make cost data available to the Government.
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