Cost Audit and 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 auditor	10%
	• 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 Rules	10%
	• 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 Rules	20%
	• 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 Standards	10%

Section II : Internal Audit and Operational Audit

1.	Basics of internal audit and operational audit	10%
	• 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 functions	10%
	• 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 accountants	5%
	• Statutory, • Non Statutory. • WTO regime. • Assessment and quantification of losses under marine, fire & accident policies • ANTI-DUMPING – meaning, process, role of cost accountants
5.	Professional Ethics	10%
	• 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 standards	5%