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

As defined in the Standard on Cost Auditing dealing with Cost Audit Documentation (SCA 102), 'audit documentation' refers to which of the following?

Audit documentation means records, physical or electronic, including working papers, prepared by or for the cost auditor or obtained and retained by the auditor in connection with performing the audit. It is wider than the report, the company's cost records or management representations alone.

  1. AOnly the signed cost audit report filed with the Central Government
  2. BRecords in physical or electronic form, including working papers, prepared by or for, or obtained and retained by the cost auditor in connection with the auditCorrect
  3. COnly the cost records maintained by the company under the Cost Records Rules
  4. DOnly the written representations obtained from the management

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 report, the company's cost records or management representations, so the other options are too narrow.

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