Cost and Management Audit

Paper Code: 
ATG 324
Credits: 
6
Contact Hours: 
90.00
Max. Marks: 
100.00
Objective: 

The objective of this course is to -

  • Promote the knowledge of Cost and Management Accountancy
  • Provide educational facilities for training of budding professionals for excelling in the field of management accounting
  • Promote the decision-making skills and administrative competence relevant to management accounting and corporate management in general.

Course Outcomes (COs):

Course

Learning outcome (at course level)

Learning and teaching strategies

Assessment Strategies

Paper Code

Paper Title

 

ATG 324

Cost & Management Audit

CO63:Focus on basic cost information, appropriately computed cost centre wise, system based cost data support for decision making processes.

CO64:Ensure uniformity and maintain cost records as per Generally Accepted Cost Accounting Principles.

CO65:Tabulate the cost information and construct the system thus evolved for gainful operation and use in the strategy making for measuring productivity, profitability, etc.

CO66:Prepare cost audit report in compliance with statutory obligations

CO67:Understand the usefulness of cost audit and interpret for stakeholders view.

CO68:Discuss the concepts of management audit and demonstrate its usefulness.

CO69:Evaluate the performance of an organization through cost accounting records and cost audit reports.

Approach in teaching:

Interactive Lectures, Discussion, Tutorials, assignments.

 

Learning activities for the students:

Self learning assignments, Effective questions,  Giving tasks,

 

Class test, Semester end examinations,  Quiz, Solving problems in tutorials, Assignments,  Individual projects

 

18.00
Unit I: 
.

Cost Audit: Meaning, Object, Advantage of cost Audit, Difference between Financial and cost audit, Cost Audit of Material, Labour and Overhead.
Cost Auditor: Appointment, Rights, Duties and Liabilities of Cost Auditor under the Companies Act 2013, Relationship between the Statutory financial auditor, Cost Auditor and Internal Auditor.

18.00
Unit II: 
.

Cost Accounting Record Rules: requirements, Maintenance of Cost Accounting Records, CARR in different Industries with special reference to cement industry and steel industry.
Preparation of the Cost Audit Programme: Evaluation of internal control system including material inventory, capacity utilization, management information system and internal audit.

18.00
Unit III: 
.

Cost Audit Report. Audit and Investigation for specify purpose. Advance Report writing with reference to specific situations and problems
Peer Review: Improving Audit Quality: Concept, Objectives, Scope, Procedure

18.00
Unit IV: 
.

Management Audit: Meaning, Nature, and Scope, Qualities of Management Auditor, Concept of Efficiency Audit, Proprietary Audit and Operational Audit
Programming and Managing the Management Audit Function: Planning, Determination of Scope, Frequency of management audit, Recruitment and Training of Management Auditor,

18.00
Unit V: 
.

Specific areas of Management Audit involving review of internal control, review of purchasing control, review of selling and distribution policies and programmes, review of manufacturing operations

Essential Readings: 

1. Cost and Management Audit: Agarwal, Pareek (Ramesh Bool Depot)
2. Students Guide to Auditing: ArunaJha (Taxmann)
3. Auditing: Jain, Khandelwal, Pareek (Ramesh Book Depot)
4. Auditing Theory & Practice: A.K Singh (Galgotia Publishing Company New Delhi)

References: 

1. Contemporary Auditing: Kamal Gupta(Tata Mc-Graw Hill)
2. Auditing: Principle and Practice, S.D Sharma (Taxmann)
3. Auditing Principles and Problems: T.R Sharma (SahityaBhawan Agra)
4. Fundamental of Auditing: Gupta &Arora (Tata McGraw Hill)

Academic Year: 
2020-2021
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