CMA Final · Cost and Management Audit · Cost Auditing and Assurance Standards
Which of the following is NOT stated in SCA 103 as an inherent limitation preventing a cost auditor from obtaining absolute assurance?
The absence of an industry-specific cost accounting standard is not listed as an inherent limitation. SCA 103 cites sample testing, internal control limitations such as management override or collusion, and evidence being persuasive rather than conclusive.
- AUse of sample testing
- BPossibility of management override or collusion limiting internal control
- CMost audit evidence being persuasive rather than conclusive
- DAbsence of a cost accounting standard for every industryCorrect
Explanation
SCA 103 lists sample testing, inherent limitations of internal control (e.g., management override, collusion) and the persuasive rather than conclusive nature of evidence. Absence of an industry-specific standard is not listed, so it is the exception.
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