Paper 19

Paper 19

Paper 19 : Cost & Management Audit (CMAD)

OBJECTIVES

To promote the knowledge of Cost and Management Accountancy to provide educational facilities for training of budding professionals for excelling in the field of management accounting. To promote the decision-making skills and administrative competence relevant to management accounting and corporate management in general.

Learning Aims

The syllabus aims to test the student’s ability to:

  • Focus on basic cost information, appropriately computed cost centre wise, system based cost data support for decision making processes
  • Ensure uniformity and maintain cost records as per Generally Accepted Cost Accounting Principles
  • Tabulate the cost information and construct the system thus evolved for gainful operation and use in the strategy making
  • For measuring productivity, profitability, etc.
  • Prepare cost audit report in compliance with statutory obligations
  • Understand the usefulness of cost audit and interpret for stakeholders view
  • Discuss the concepts of management audit and demonstrate its usefulness
  • Evaluate the performance of an organization through cost accounting records and cost audit reports
  • Recommend desired course of action for optimal utilization of scarce resources which can lead to improve the productivity and profitability of an organization

Section A : Cost Audit 35%

  • Nature, Scope, Utility and Advantages of Cost Audit
  • Companies (Cost Records & Audit) Rules, 2014
  • Professional Ethics, Misconduct, Offences and Penalties
  • Cost Accounting Standards
  • Cost Auditing and Assurance Standards
  • Format of Cost Audit Report – XBRL – Salient Features

Section B: Management Audit 15%

  • Management Reporting issues under Cost Audit
  • Management Audit – Meaning, Nature, Scope etc.
  • Energy Audit, Efficiency Audit, Propriety Audit and Systems Audit
  • Evaluation of Corporate Image – Corporate Development Audit
  • Impact of Environmental Pollution

Section C: Internal Audit, Operational Audit and other related issues 25%

  • Concept of Internal Audit
  • Provisions of Internal Audit under Companies Act, 2013
  • Audit Planning, Audit Programme, Audit workiong papers
  • Receivables Audit, Audit of Services and Local Bodies

Section D: Case Study on Performance Analysis 25%