AUDIT COST definition with examples and formula

Definition of AUDIT COST with formula and example to solve the problems with the suitable solution using concept in accounting keeping in mind the limitations and errors. How to calculate AUDIT COST with disadvantages and advantages using the rules in Cost and Management Accounting.

AUDITOR’S DUTIES

AUDITOR’S DUTIES COMPANY LAW: The Company’s ordinance 1984 is silent about thecreation of sinking fund. There is no legal formality for the establishment of sinking fund. ARTICLES OF ASSOCIATION: The articles of association may require the creation of sinking fund. … Continue reading

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INVESTIGATION TO DETECT FRAUD

INVESTIGATION TO DETECT FRAUD MISAPPROPRIATION OF CASH , 1.           REASONS: The investigator should enquire into reasons of defalcation. There may be omission of receipts, theft of income, short banking, lapping, under-casting, short-carryover, double payments, and over-casting. Personal expenses can be … Continue reading

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COST AUDIT PROGRAMME

COST AUDIT PROGRAMME 1.         KNOWLEDGE RELATING TO THE COMPANY: The auditor must know the work being done by the company. The knowledge relating to entity, production process, types of products, and financial performance as well as general level of competence … Continue reading

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CONTENTS OF COST AUDIT REPORT

CONTENTS OF COST AUDIT REPORT (a)          Cost accounting records; (b)          a statement of production capacity of the plant, in terms of machine hours and production units, the actual utilisation of the capacity and the reasons of difference between the two; … Continue reading

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COST ACCOUNTING RECORDS

COST ACCOUNTING RECORDS Cost accounting records form an important part of cost accounting system. The principles of double-entry book-keeping are followed for maintaining records relating to transactions involving costs. The end product of the cost accounting records is the generation … Continue reading

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AUDIT OF COST ACCOUNTS RULES 1998

AUDIT OF COST ACCOUNTS RULES 1998 The Companies (Audit of Cost Accounts) Rules 1998 have been promulgated for the audit of cost accounting records in the manner required therein. The cost accounting records are required to be audited by a … Continue reading

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