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 [...]
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. [...]