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

Which of the following is NOT among the minimum items of cost audit documentation for smaller entities listed in the application guidance of SCA 102?

A verbatim record of all management discussions is not in the minimum list. SCA 102 requires items such as the organization chart, manufacturing process description, internal controls, risk assessment, materiality tests, audit strategy and plan, and significant matters with conclusions.

  1. AAn organization chart showing responsibility centres and the person responsible
  2. BTests of materiality used
  3. CA description, preferably a flow chart, of the manufacturing process
  4. DA verbatim record of all management discussions held during the yearCorrect

Explanation

The minimum list includes entity description, organization chart, manufacturing process flow chart, internal controls over material, labour and expenses, assessed risks, materiality tests, audit strategy and plan, and significant matters with conclusions. A verbatim record of management discussions is not listed.

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