CMA Final · Cost and Management Audit · Cost Audit Programme
Which of the following is a stated purpose of cost audit documentation under SCA 102?
One stated purpose of cost audit documentation under SCA 102 is enabling quality control reviews and external inspections in line with legal and regulatory requirements. It supports planning, supervision and accountability, but it does not fix fees, replace cost records or compute product costs.
- AEnabling the conduct of quality control reviews and external inspectionsCorrect
- BFixing the audit fee payable by the company
- CReplacing the cost records maintained by management
- DDetermining the cost of production of each product for pricing
Explanation
SCA 102 lists enabling quality control reviews and external inspections among the additional purposes of documentation, along with assisting planning, supervision and retaining records of continuing significance. Documentation does not fix fees, replace management's cost records, or determine product costs.
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