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 will help you to differentiate between Internal Auditor and Cost Auditor. Before a general discussion on the matter is made it should be pertinent to note that an internal auditor: (i) Is an employee of the company, (ii) Has to be loyal to the company by responding to the uses and requirements of the company management, although independent [...]
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. [...]