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

Where the cost auditor cannot obtain reasonable assurance, SCA 103 states that the cost auditor should:

The cost auditor should qualify the opinion and, in extreme cases, disclaim an opinion. SCA 103 provides this treatment when reasonable assurance about the Cost Statements cannot be obtained, rather than issuing an unqualified or automatically adverse opinion.

  1. AWithdraw the cost statements from audit
  2. BQualify the opinion and, in extreme cases, disclaim an opinionCorrect
  3. CIssue an unqualified opinion with an emphasis note
  4. DExpress an adverse opinion in every such case

Explanation

SCA 103 says that where reasonable assurance cannot be obtained, the cost auditor should qualify the opinion and in extreme cases disclaim an opinion. It does not prescribe an unqualified opinion or an automatic adverse opinion.

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