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

According to the Standard on Cost Audit Documentation (SCA 102), which of the following best describes 'audit documentation'?

Audit documentation means 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. It is wider than the final report and includes all working papers supporting the audit.

  1. AOnly the final cost audit report signed and filed by the Cost Auditor
  2. BRecords in physical or electronic form, including working papers, prepared by and for, or obtained and retained by the Cost Auditor in connection with the auditCorrect
  3. COnly the oral explanations given by the management during the audit
  4. DOnly the cost records maintained by the company under its books of account

Explanation

SCA 102 defines audit documentation as 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. It is not limited to the final report, and oral explanations are not documentation.

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