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Cost and Management Audit · Cost Audit Documentation, Audit Process and Execution

SCA 102 Scope and Definitions of Cost Audit Documentation

Updated 11 October 2026 · Fact-checked

SCA 102 deals with the cost auditor's responsibility to prepare audit documentation for the audit of cost statements, records and related documents. Audit documentation means the records, including working papers, prepared or obtained and retained by the auditor. The auditor assembles them in an audit file for each assignment.

Understand SCA 102 Scope and Definitions of Cost Audit Documentation

SCA 102 (Cost Audit Documentation) tells the cost auditor what record of the audit to keep. Without that record, you cannot show that you did the work, or that your report rests on evidence.

The scope (para 3) says the Standard deals with the cost auditor's responsibility to prepare audit documentation for the audit of cost statements, records and other related documents. Two points sit inside the scope. First, the documentation requirements in other Cost Auditing Standards do not limit SCA 102. Second, laws or regulations may add further documentation requirements. So SCA 102 is a base, not a ceiling.

Now the key definitions in para 4. Audit documentation (4.2) means the records, in physical or electronic form, including working papers, prepared by and for, or obtained and retained by, the cost auditor in connection with the audit. Note the width: it covers records the auditor prepares and records the auditor only obtains and keeps.

Audit working papers (4.6) are the documents that record all audit evidence obtained during the audit. They support the work done, to give assurance that the audit was performed in accordance with the relevant Cost Auditing Standards. Audit file (4.3) means one or more folders or other storage media, physical or electronic, containing the records that make up the audit documentation for a specific assignment or audit.

The standard also defines audit (4.1), audit partner (4.4), audit team (4.5) and firm (4.8). Audit is an independent examination of financial, cost and other related information of an entity, profit oriented or not, irrespective of size or legal form, conducted with a view to expressing an opinion. The same definition of audit documentation also appears in SCA 108 (para 4.2).

Key rules to remember

Scope of SCA 102 (para 3)
Auditor's responsibility to prepare audit documentation for audit of cost statements, records and other related documents
Other SCAs' documentation requirements do not limit SCA 102. Laws or regulations may add requirements.
Audit documentation (para 4.2)
Records (physical or electronic) incl. working papers, prepared by and for, or obtained and retained by, the cost auditor in connection with the audit
Includes both prepared and obtained records.
Audit working papers (para 4.6)
Documents recording all audit evidence obtained during the audit
Support the work done and give assurance the audit followed the relevant Cost Auditing Standards.
Audit file (para 4.3)
One or more folders or other storage media (physical or electronic) containing the records that comprise audit documentation for a specific assignment
One file set per assignment.
Assembly of file (paras 5.8 and 6.16)
Assemble documentation in an audit file; complete final assembly within a reasonable time after the audit; no deletion or discarding before the retention period ends
Documentation is assembled as the audit goes on; final assembly should be limited in extent.
Audit team (para 4.5)
All personnel performing an engagement, including any experts contracted by the firm for it
Experts are part of the team.

How to solve SCA 102 Scope and Definitions of Cost Audit Documentation questions

Use this method for any question on the scope or definitions of SCA 102.

  1. 1Read the question and decide whether it asks for scope, a definition, or an application to a case.
  2. 2For a definition, state the term and quote its key words: form (physical or electronic), who prepares or obtains, and the purpose.
  3. 3For scope, state that SCA 102 covers the auditor's responsibility to prepare documentation for the audit of cost statements, records and related documents.
  4. 4Add the two qualifiers: other SCAs do not limit SCA 102, and laws or regulations may add requirements.
  5. 5Link the terms: working papers are part of audit documentation, and audit documentation is held in the audit file.
  6. 6For a case, match each item in the facts to a term, then apply the file assembly rules (para 5.8 and 6.16).
  7. 7Close with a one-line conclusion that answers the exact question asked.

Quickest way: Term-to-purpose matching

When to use it: Use it for MCQs that ask you to pick the correct definition or scope statement.

  1. Working papers = record of audit evidence.
  2. Audit documentation = wider set, prepared or obtained, including working papers.
  3. Audit file = the container, per assignment.
  4. Audit team includes contracted experts.
  5. Reject options that say documentation requirements are limited to SCA 102 or that the auditor may discard papers after assembly.

Common mistakes in SCA 102 Scope and Definitions of Cost Audit Documentation

  • Treating working papers and audit documentation as the same thing

    Both words sound alike and both mean audit records.

    Fix: Working papers are a part of audit documentation. Documentation also covers records obtained and retained.

  • Saying the audit file is a single physical folder

    The word 'file' suggests paper.

    Fix: The definition says one or more folders or other storage media, physical or electronic.

  • Saying SCA 102 is the only source of documentation requirements

    Students overlook the last two sentences of the scope.

    Fix: Other SCAs' requirements do not limit SCA 102, and laws or regulations may add more.

  • Leaving out 'obtained and retained' from the definition of audit documentation

    Students remember only records the auditor prepares.

    Fix: Write 'prepared by and for, or obtained and retained by, the cost auditor'.

  • Believing assembly of the file happens only at the end

    Students read 'final assembly' and ignore the rest.

    Fix: Documentation is assembled as the audit goes on, and the final assembly should be limited and done within a reasonable time.

  • Thinking the auditor may delete papers once the file is assembled

    Students assume tidying the file is allowed.

    Fix: After final assembly, no documentation of any nature may be deleted or discarded before its retention period ends.

Worked examples

Example 1

Define 'audit documentation' and 'audit working papers' as per SCA 102 and state how they differ.

Show the solution
  1. Audit documentation (para 4.2): records, physical or electronic, including working papers, prepared by and for, or obtained and retained by, the cost auditor in connection with the audit.
  2. Audit working papers (para 4.6): documents that record all audit evidence obtained during the audit.
  3. Working papers are used to support the audit work done and give assurance that the audit was performed in accordance with the relevant Cost Auditing Standards.
  4. Difference: audit documentation is the wider term and includes working papers, plus other records obtained and retained by the auditor. Working papers specifically record audit evidence.

Answer: Audit documentation is the wider set of records, including working papers, prepared or obtained and retained by the cost auditor. Working papers are the part that records audit evidence and supports the audit work done.

Example 2

A cost audit firm finishes an assignment and assembles the audit file. A junior suggests deleting some draft working papers to keep the file neat. Advise the firm, with reference to SCA 102.

Show the solution
  1. The audit file (para 4.3) contains the records that comprise audit documentation for the specific assignment. Draft working papers are part of audit documentation if they were prepared in connection with the audit.
  2. Para 5.8 requires the auditor to assemble the audit documentation in an audit file.
  3. Para 6.16 says that after final assembly is complete, the auditor should not delete or discard audit documentation of any nature before the end of its retention period.
  4. So the suggestion cannot be accepted. Final assembly should be done within a reasonable time after the audit, and it should be limited, as documentation is assembled as the audit goes on.

Answer: The firm should not delete the draft working papers. After the file is assembled, no audit documentation of any nature may be deleted or discarded before its retention period ends.

Exam tips

  • Learn the definitions almost word for word. MCQs often swap one phrase, such as 'prepared' for 'obtained and retained'.
  • For a short note on SCA 102 scope, give three points: coverage, no limit from other SCAs, and additional legal requirements.
  • In case questions, label each item as documentation, working paper or audit file before you apply the rule.
  • Quote the paragraph numbers (3, 4.2, 4.3, 4.6, 5.8, 6.16) only where you are sure. The numbers add credibility but the content earns marks.

Practice questions from Cost Audit Documentation, Audit Process and Execution

SCA 102 Scope and Definitions of Cost Audit Documentation in other exams

The same ground in other exams, if you are preparing for more than one or want another angle on it.

SCA 102 Scope and Definitions of Cost Audit Documentation: frequently asked questions

What is the scope of SCA 102?

It deals with the cost auditor's responsibility to prepare audit documentation for the audit of cost statements, records and other related documents. Other Cost Auditing Standards' documentation requirements do not limit it. Laws or regulations may add requirements.

What is an audit file under SCA 102?

It is one or more folders or other storage media, physical or electronic, containing the records that make up the audit documentation for a specific assignment or audit. The auditor assembles the documentation in it.

Are working papers and audit documentation the same?

No. Working papers record the audit evidence obtained. Audit documentation is wider: it includes working papers and other records prepared by, for, or obtained and retained by the cost auditor.

Can the auditor remove papers from the file after assembly?

No. Once final assembly is complete, the auditor should not delete or discard audit documentation of any nature before the end of its retention period.