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CMA Final · Cost and Management Audit · Cost Audit Programme

Under the Standard on Cost Auditing dealing with cost audit documentation (SCA 102), for how long should the cost audit documentation be retained?

Cost audit documentation should be retained for at least ten years from the date of the Cost Audit Report, as SCA 102 provides. The period runs from the report date, not from the financial year end, and shorter periods such as five or eight years are insufficient.

  1. AAt least five years from the date of the Cost Audit Report
  2. BAt least eight years from the date of the Cost Audit Report
  3. CAt least ten years from the date of the Cost Audit ReportCorrect
  4. DAt least ten years from the end of the financial year audited

Explanation

The application guidance in SCA 102 (para 6.18) says cost audit documentation should be retained for at least ten years from the date of the Cost Audit Report. The option counting from the financial year end uses the wrong starting date. Five and eight years are shorter than the prescribed minimum.

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