CMA Final · Cost and Management Audit · Cost Auditing and Assurance Standards
SCA 103 says a Cost Auditing Standard is relevant to an audit when:
A Cost Auditing Standard is relevant when it is in effect and the circumstances it addresses actually exist in the audit. Simply being issued, or being requested by management, does not make a standard relevant to the engagement.
- Ait has been issued by the Institute, irrespective of its effective date
- Bit is in effect and the circumstances addressed by it existCorrect
- Cthe company's management requests its application
- Dthe audit fee exceeds a prescribed threshold
Explanation
SCA 103 defines relevance as the standard being in effect and the circumstances it addresses existing. Mere issue without being in effect does not make it relevant, and management's request or fee level plays no role.
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