This article throws light upon the top three roles of a cost auditor. The roles are: 1. As an 'Agent' 2. As an 'Officer' 3. As a 'Servant'. Role # 1. As an 'Agent': If the basis of appointment of the auditor by different parties is the criteria to establish relationship among different persons who are parties to the respective [...]
This article throws light upon the top three responsibilities of a cost auditor. The responsibilities are: 1. Professional Responsibilities 2. Ethical Responsibilities 3. Legal Responsibilities. Responsibility # 1. Professional Responsibilities: The Council of the Institute of Cost and Works Accountants of India has cast upon the cost auditors the following nature of responsibilities. (i) Responsibility to clients and confidentiality: He [...]
This article throws light upon the two main classification of the liabilities of a cost auditor. The classifications are: 1. Contractual Liability 2. Criminal Liability. Cost Auditor’s Liabilities: Classification # 1. Contractual Liability: The cost auditor is liable for non-fulfilment of the terms and conditions of an agreement between him and the company who appoints him e.g. voluntary cost audit. [...]