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CMA Intermediate · Corporate Accounting and Auditing · Cost Audit

According to the introduction of SCA 103, which matter does the Standard deal with?

SCA 103 deals with the overall objectives of the independent cost auditor, the nature and scope of a cost audit, and the auditor's overall responsibilities when auditing cost statements in accordance with the Cost Auditing Standards, including the duty to comply with them.

  1. AOnly the fees payable to a cost auditor
  2. BThe overall objectives of the independent cost auditor and the nature and scope of a cost audit, including conduct in accordance with Cost Auditing StandardsCorrect
  3. COnly the preparation of the cost statements by management
  4. DThe rules for appointment of internal auditors under section 138

Explanation

The introduction to SCA 103 says it deals with the overall objectives of the independent cost auditor, the nature and scope of a cost audit, and the auditor's overall responsibilities when auditing cost statements in accordance with Cost Auditing Standards. It also covers the obligation to comply with those Standards. Fees and internal audit appointment are not its subject.

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