CWA ICWA Final : Group IV - Cost Audit & Operational Audit

ICWAICWA ICWA (2008)FinalSyllabus and Books • Group IV - Cost Audit & Operational Audit

ICWA :: Final
Paper 17 : Cost Audit & Operational Audit and Ethics
[One Paper: 3 hours:100 marks]

Objective . . .

To gain an in-depth knowledge of the techniques and methods of planning and conducting Cost Audit
To develop the skill in Internal Control, Internal Auditing and Operational Audit
1.Basics of cost audit, appointment of cost auditor10%
Nature and scope of cost audit.
Provisions under Companies Act relating to maintenance of Cost Records and Cost Audit.
Cost auditor – appointment, rights and responsibilities
Structuring the cost audit
2.Cost Audit Report Rules10%
Provisions of Cost Audit Report Rules 2001
Form of cost audit report
Annexures to the cost audit report
Pro-forma to the cost audit report.
Usefulness of Cost Audit.
3.Cost Accounting Record Rules20%
Procedure for prescription of cost accounting record rules
Cost accounting record rules and its applicability
Provisions of cost accounting record rules for various industries.
4.Cost Accounting Standards10%

Section II : Internal Audit and Operational Audit

1.Basics of internal audit and operational audit10%
Concept of internal and operational audit
Internal Audit - techniques and procedures
Internal Audit Report.
Operational audit – techniques and procedures
Operational audit report
Special reports for banks, shareholders, employees etc
evaluation of internal control system, budgetary control system, inventory control system, management information system.
2.Management Audit in Different forms and functions10%
Corporate Services Audit
Audit checks of different functions
Corporate Governance and Audit Committee
3.Various types of audit and their process;10%
Due Diligence audit
SOX Audit
Energy Audit – meaning & methodology
Productivity audit
Inventory audit
VAT Audit.
Special audit under excise , service tax and customs records by cost accountant
Environment audit
Qualities of good certificate/report
Bank Audit and Concurrent Audit.
Systems Audit.
Audit under ERP environment.
4.Fields for practicing cost accountants5%
Non Statutory.
WTO regime.
Assessment and quantification of losses under marine, fire & accident policies
ANTI-DUMPING – meaning, process, role of cost accountants
5.Professional Ethics10%
Meaning of professional values and ethics,
ICWAI & IFAC guidelines for professional values and ethics,
Ethical codes applicable to professional Accountants in India, Ethical code for Cost Accountants under Cost and Works Accountants Act, 1959 and The Cost and Works Accountants Regulations, 1959, as amended up to date.
6.Auditing and Assurance standards5%

Recommended Books

Cost Audit and Management AuditSaxena & VashistSultan
Guidance Notes to Cost AuditICWA of IndiaICWAI
ICWAI’s Publication relating to Cost Accounting Record Rules on various Industries ICWA of IndiaICWAI
The Management AuditLeonard
Efficiency AuditingWalleyMacmillan
Cost Audit and Management AuditA.R.Ramanathan
Cost AuditJ.P.Berry
A Commentary on Cost Accounting (Records) RulesA.V.Ramana Rao