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CMA Final · Cost and Management Audit · Cost Audit Programme

After the date of the Cost Audit Report, the cost auditor learns of a fact which, if known earlier, would have caused the cost statements to be changed or the report modified. As per SCA 102 application guidance, what should be done regarding documentation?

The fact should be added to the cost audit documentation, and the resulting changes must be reviewed in the same way as the original documentation. The auditor should not ignore it merely because the report was already issued.

  1. AAdd the fact to the cost audit documentation and review the resulting changes as the original documentation was reviewedCorrect
  2. BIgnore it, since the report has already been issued
  3. CDestroy the original documentation and prepare a fresh file
  4. DRecord it only in the company's cost records, not in the auditor's file

Explanation

Para 6.15 of SCA 102 says such facts should be added to the cost audit documentation, and the resulting changes must be reviewed just like the original documentation. Ignoring them or replacing the file contradicts this.

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