COST AND MANAGEMENT AUDIT

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

Learning outcome (at course level)

Learning and teaching strategies

Assessment Strategies

  
 

CO 79: Focus on basic cost information, appropriately computed cost centre wise, system based cost data support for decision making processes.

CO 80: Ensure uniformity and maintain cost records as per Generally Accepted Cost Accounting Principles.

CO 81: Tabulate the cost information and construct the system thus evolved for gainful operation and use in the strategy making for measuring productivity, profitability, etc.

CO 82: Prepare cost audit report in compliance with statutory obligations

CO 83: Understand the usefulness of cost audit and interpret for stakeholders view.

CO 84: 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: 
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 statutory financial auditor, Cost Auditor and Internal Auditor.

18.00
Unit II: 
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: 
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: 
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: 
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: 

 

References: 

SUGGESTED READINGS:
• Cost and management audit: Ramanathan(Tata McGraw Hill)
• Contemporary Auditing: Kamal Gupta(Tata Mc-Graw Hill)
• Auditing Principles And Practice: Ravinder Kumar, Virender Sharma (PHI Learning)
• Auditing: Principle and Practice, S.D Sharma (Taxmann)

e-RESOURCES:
• https://icmai.in/upload/Students/Syllabus2016/Final/Paper-19-August.pdf
• https://egyankosh.ac.in/bitstream/123456789/13796/1/Unit-12.pdf
• https://docplayer.net/7215617-Chapter-30-cost-audit.html

JOURNALS:
• Business Perspectives and Research
• IUP Journal of Accounting Research
• Jindal Journal of Business Research
• Nirma University Journal of Business & Management Studies
• Oorja
• The Chartered Accountant
• The Indian Journal of Commerce

Academic Year: 
2022-2023
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