CMA Final · Cost and Management Audit · Cost Auditing and Assurance Standards
According to SCA 103, a Cost Auditing Standard is 'relevant to the audit' when:
A standard is relevant to the audit when it is in effect and the circumstances it addresses actually exist in that audit. Both conditions must be met; being merely issued, or requested by management, does not make a standard relevant.
- Ait is in effect and the circumstances addressed by the standard existCorrect
- Bit has been issued by the Institute, whether or not it is in effect
- Cit deals with any area in which management has requested assurance
- Dit relates to cost statements of a company covered by the Companies Act only
Explanation
SCA 103 para 5.2 defines relevance by two conditions together: the standard is in effect and the circumstances it addresses exist. Mere issue, or a management request, does not make it relevant.
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