After reading this article you will learn about the Functional Responsibility of a Cost Auditor. The expression that an auditor is a watch-dog and not a bloodhound was made in the course of judgment in a leading case- The Kingston Cotton Mills Company Ltd. A misfeasance action was taken by the liquidator against the auditor of the company to recover [...]
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. [...]
After reading this article you will learn about the rights, powers and duties of the Cost Auditor. Rights and Powers of a Cost Auditor: According to Section 233B (4) of the Companies Act, 1956, the cost auditor 'shall have the same powers and duties in relation to an audit conducted by him under this section as an auditor of a [...]