Skip to content

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

Under SCA 102, why is it preferable to prepare cost audit documentation on a timely basis during the audit rather than after the work is completed?

Timely preparation enhances audit quality, whereas documentation prepared after the audit work has been done is likely to be less accurate than documentation prepared during execution. The standard does not call late documentation legally invalid, nor does timely preparation remove other requirements.

  1. ADocumentation prepared later is invalid under law
  2. BTimely preparation removes the need for an audit plan
  3. CDocumentation prepared after the work is likely to be less accurate than that prepared during execution, and timely preparation enhances audit qualityCorrect
  4. DTimely preparation allows the auditor to skip documenting significant matters

Explanation

SCA 102 notes that timely preparation helps enhance audit quality, while documentation prepared after the work is performed is likely to be less accurate. It does not say late documentation is invalid, nor does it remove the need for planning or for documenting significant matters.

Did you get it right without looking?

One question tells you little. A timed set on Cost Audit Documentation, Audit Process and Execution shows your real accuracy, how long you take and where you lose marks.

Practise Cost Audit Documentation, Audit Process and ExecutionFree diagnostic mock

More Cost Audit Documentation, Audit Process and Execution questions