Advantages of Cost Audit
Cost audit is beneficial to management, statutory auditor, cost accountant, and all other persons interested in the organisation. The advantages of cost audit to the several parties can be shortened as follows:
Advantages to Management
(a) The auditing of cost accounts acts like a useful tool in the hands of management for the detection of frauds, inconsistencies, errors, and irregularities. The function of the cost auditor is such as lubricating the machines that is why effective, reliable and smooth functioning of the costing system is sustained.
(b) On cost reports after cost audit greater reliability can be put and, So decision making can be made more confidently because the basis of the principle of management through exception.
(c) Cost audit also work as a medium of better understanding and liaison among persons at the helm of affairs and persons at the bottom.
(d) Management acquires constructive advice for day to day activities of the business:
(e) Audited cost accounts are useful in making inter-firm comparison.
(f) The presence of cost audit has a great moral affect as a result of which the efficiency is promoted.
(g) Wastages are checked.
Advantages to statutory auditor
(i) The statutory auditor can establish the scope and character of his audit after containing an appraisal of costing system used through the organisation.
(ii) Cost records are useful to the statutory auditor in respect of the following matters:
(a) The valuation of closing inventory is prepared on the basis of cost or market price, that is less". Cost records assist the statutory auditor in determining the cost of such type of inventory.
(b) Cost records will be useful in ascertaining the correctness of the remuneration payable to employees or directors like a percentage of gross profit or departmental profits.
Advantages to shareholders and tax payers
(i) External cost audit represents the following features advantageous for the shareholders or tax payers:
(a) Inefficiency or efficiency of the management.
(b) Improper or proper use of resources.
(c) Weak or strong points of the organisation.
(d) Productivity of materials machines and labour.
(ii) Cost audit makes sure that inventory of raw materials, work-in-progress and finished goods have been correctly valued. So it helps in providing to the shareholders and the tax payers a very much better picture of the concern.
Advantages to the government
(i) Government is makes sure about the correctness of the cost data in case of cost plus contracts.
(ii) Correct cost data assists the Government in fixing fair price of the products. Undue profiteering is checked.
(iii) Correct action can be taken through the Government in case management is found to be weak, not efficient or corrupt.
(iv) In case of escalation clause being involved in the contract, the contractee can be sure regarding the cost data if cost accounts have been audited through qualified cost accountants.
(v) Cost audit pinpoints the areas in which economy and efficiency can be achieved. So, it contributes in the direction of the betterment of national economy.
Advantages to Society
(i) Through fixing prices reasonable/consumers are saved from exploitation.
(ii) Healthy competition between dissimilar units in industry is generated, leading proper utilisation of scarce resources.
Latest technology based Cost Accounting Online Tutoring Assistance
Tutors, at the www.tutorsglobe.com, take pledge to provide full satisfaction and assurance in Advantages of Cost Audit homework help via online tutoring. Students are getting 100% satisfaction by online tutors across the globe. Here you can get homework help for Advantages of Cost Audit, project ideas and tutorials. We provide email based Advantages of Cost Audit homework help. You can join us to ask queries 24x7 with live, experienced and qualified online tutors specialized in Advantages of Cost Audit. Through Online Tutoring, you would be able to complete your homework or assignments at your home. Tutors at the TutorsGlobe are committed to provide the best quality online tutoring assistance for Cost Accounting homework help and assignment help services. They use their experience, as they have solved thousands of the cost accounting assignments, which may help you to solve your complex issues of Advantages of Cost Audit. TutorsGlobe assure for the best quality compliance to your homework. Compromise with quality is not in our dictionary. If we feel that we are not able to provide the homework help as per the deadline or given instruction by the student, we refund the money of the student without any delay.
tutorsglobe.com internal economies of scale assignment help-homework help by online internal economies tutors
tutorsglobe.com permeability and water potential assignment help-homework help by online absorption and movement tutors
Mycology tutorial all along with the key concepts of Significance of fungi, Beneficial Effects of Fungi, Harmful Effects of Fungi, General properties of fungi, Classification of fungi, Morphology of fungi, Moulds, Yeasts, Reproduction in fungi
tutorsglobe.com plant physiology assignment help-homework help by online botany tutors
Sorting algorithm and their types including the key concepts of Bubble Sort, Quick Sort, Quick sort pseudo code, Quick Sort for C, Multi field sorting, advanced sorting technique, Linear-time Sorting, Assignment help and Homework help.
TutorsGlobe.com Periodic Table-Classification of Elements Assignment Help-Homework Help by Online Access Chemistry Tutors
www.tutorsglobe.com offers free assignment help for vogel’s approximation method, unit cost penalty method, operation research subject.
Prokaryotic Cell Structure tutorial all along with the key concepts of Prokaryotic Cellular Components, Prokaryotic Cell Wall, Cytoplasmic Membrane, Nuclear Material, Cytosol, Ribosomes, Flagella, Bacterial chromosomes, Plasmids
There are two issues that can be taken to preparing the statement of cash flows: the direct method and the indirect method.
vacuum impregnation is extremely identical to the hot dip method but is much well-organized.
www.tutorsglobe.com offers Advantages and Disadvantages of Data Dictionary homework help, assignment help, case study, writing homework help, online tutoring assistance by computer science tutors.
tutorsglobe.com management of fish farm assignment help-homework help by online pisciculture tutors
www.tutorsglobe.com offers entropy and free energy homework help, entropy and free energy assignment help, online tutoring assistance, physical chemistry solutions by online qualified tutor's help.
Diagrams might be of different types, One-Dimensional Diagrams,Two-Dimensional Diagrams, Three-Dimensional Diagrams, Pictograms, Cartograms or Map Diagrams. Costing data are usually presented by one-dimensional or two-dimensional diagrams.
tutorsglobe.com simple fruits assignment help-homework help by online structure of fruit tutors
1962472
Questions Asked
3689
Tutors
1476641
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!