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CMA Final · Cost and Management Audit · Cost Auditing and Assurance Standards

Under SCA 103, when may a cost auditor represent in the cost auditor's report that the audit complied with the Cost Auditing Standards?

Only when the auditor has complied fully with all Cost Auditing Standards relevant to the audit. SCA 103 prohibits representing compliance otherwise, so substantial or majority compliance and management representations are not enough to claim compliance in the report.

  1. AWhen the auditor has complied with the majority of the standards
  2. BWhen management confirms in writing that the standards were followed
  3. COnly when the auditor has complied fully with all Cost Auditing Standards relevant to the auditCorrect
  4. DWhen the audit was carried out under the Companies Act

Explanation

SCA 103 requires that the auditor shall not represent compliance unless all the standards relevant to the audit have been complied with fully. Complying with only most standards, or management's confirmation, does not satisfy this requirement.

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