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

Which of the following is among the minimum items that SCA 102 guidance says must be included in cost audit documentation even for smaller entities?

An organization chart showing the responsibility centres and the person responsible is a required minimum item. SCA 102 guidance lists it alongside the entity description, process flow chart, internal controls, risks assessed, materiality tests, audit plan and significant matters.

  1. AA valuation report of the entity's land and buildings
  2. BAn organization chart showing responsibility centres and the person responsibleCorrect
  3. CThe complete minutes of all board meetings of the entity
  4. DA forecast of the entity's profit for the next five years

Explanation

For smaller entities, documentation may be less detailed but must at least include items such as an entity description, an organization chart showing responsibility centres and persons responsible, a process flow description, internal controls, risks, materiality tests, audit strategy and plan, and significant matters. The other options are not in that list.

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