CMA Final · Cost and Management Audit · Cost Auditing and Assurance Standards
According to SCA 103, when may a cost auditor represent compliance with the Cost Auditing Standards in the cost auditor's report?
Compliance may be represented only when the cost auditor has complied fully with all the Cost Auditing Standards relevant to the audit. Partial compliance, even with most standards, does not permit such a representation in the report.
- AWhen the auditor has complied with the majority of the standards
- BWhen the auditor has complied fully with all Cost Auditing Standards relevant to the auditCorrect
- CWhen management confirms in writing that the work was adequate
- DWhen the auditor has complied with the standards on documentation and reporting only
Explanation
SCA 103 provides that the auditor shall not represent compliance unless all the relevant Cost Auditing Standards have been fully complied with. Compliance with a majority or with selected standards is insufficient, and management's confirmation is irrelevant.
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