Cost Audit

Verify the cost account plan of your company

  • ascertains the accuracy of cost accounting records in conformity with cost accounting principles

Every company, including foreign companies defined in clause (42) of Section 2 of the Companies Act 2013, engaged in the production of the goods or providing services, and having an overall turnover from all its products and services of Rs. 35 crore or more during the immediately preceding financial year, shall be required to maintain cost accounting record.

Benefits associated with it.

Cost Analysis. detection. reperformance. 

  • It helps to detect errors, omissions, fraud.
  • It offers credibility in the market.
  • It ensures accuracy of the accounts.
  • It helps in better financial planning.
  • It ensures adhere to cost accounting standards.
  • It promots cost control and efficiency.
  • It enhance the economic use of resources.

Checklist for Cost Audit

Ready with the papers. make it simple

  • Monitoring the progress of preparation.
  • Physical inspection of the activities.
  • Knowledge of the responsible person.
  • Phyiscal inspection of the cost accounting record.
  • Study of the statements of the budgets.
  • Study to the cost accounting system.
  • Verification of the cost accounting records.
  • Examination of cost data and techniques.

Procedure for Cost Audit.

Methodology, simplified.

  • Checking of the materials ledger.
  • ensuring that the correct bin card.
  • Verification of the cost accounting records.
  • Analysis of accuracy of cost accounts.
  • Verification of the cost reports & statements.
  • Preparing of cost audit report.
  • Submission of the cost audit report. 

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