Programs & Events

404. Cost and Management Auditing – 100

Course Objective

The course is designed to achieve some specific objectives. These are to know

a.       the concepts related to cost and management audit

b.      the importance of cost and management audits

c.       how audit plans are prepared and implemented

d.      the areas where management audit can be conducted

e.       how to prepare a management audit report


A. Cost Audit - 50

Cost Audit Rules And Regulations

404.01 Introduction to cost Audit

Meaning, Nature and Scope of Cost Audit, Purpose and Objectives of Cost Audit, Concepts of Efficiency Audit, Value For Money (VFM) Audit, Performance Audit, Social Audit, Management Audit


404.02 Legal station and position of Cost Auditor as per Company Act.

Appointment under the Companies Act, Qualification and disqualification of Cost Auditor, Relationship between cost audit and annual statutory auditor, Rights and Powers, Responsibilities and Duties, Qualification and Disqualification, Resignation and Removal.


404.03 Legislation Relevant to Cost Audit

Companies Act, 1994, Cost Audit (Report) Rules, 1997, Order of the Government for Cost Audit, CMA Ordinance, 1977 (Ordinance No. LIII of 1977), CMA Regulations, 1980 (and subsequent amendments)


404.04 Duties and liabilities of Cost Auditors


404.05 Code of Conduct and Ethies

Professional misconduct, Liability of a cost auditors


404.06 Audit Planning, Contral & Reporting

1. Familiarization with the industry, the organisation, the production process systems and procedures, list of records and reposts, preparation of the audit program.

2. Verification of records and reports – Utilization of statistical sampling methods – verification of performance and statements maintained under the cost Accounting ( Records ) Rules.

3. Evaluation of Internal Control Systems - Budgetary Control Capacity utilization, inventory contral , purchase and payables sales and receivables , management information system- assessment of the adequacy of the internal audit function.

4. Risk Assessment, Preparation Cost audit report, placement of the report before the Board of directors and Finalization.


B. Management Audit - 50


404.01 Introduction

Meaning, nature and scope, organizational needs for Management Audit and its coverage over and above other audit procedures.


404.02 Areas of Management Audit

Specific areas of management and operational audit involving review of internal control, purchasing operations, manufacturing operations, selling and distri­bution, personnel policies, systems and procedures. Aspects relating to concurrent audit.


404.03 Auditing Process and Systems

Audit of the Management Processes and Functions, such as Planning, Organization, Staffing, Co-ordination, Communication, Direction and Control. 


404.04 Auditing MIS

Evaluation of Management Information and Control Systems with special emphasis on Corporate Image and Behavioral Problems. Auditing e-business, e-cash, e-payment, e-transactions.


404.05 Environmental Audit


404.06 Auditing CSR & Corporate Governance

Corporate Development and Management Audit, including operational and propriety aspects. Audit of Social responsibility of management. Corporate governance and Board Audit Committee Functions


404.07 Specialized Audit and Reports

7.01 Audit of Banks Act – 1991

7.02 Audit of Insurance Companies   Act - 1938

7.03 Audit of Financial Institutions and co-operations – 1984

7.04 Audit of charities and trusts.

7.05 Value for Money Audit.

7.06 Audit of Small Business.

7.07 Audit Committee

7.08 Professional – Auditors Liabilities

7.09 Audit of Non – Trading concern

7.10 Audit of Public Sector Corporations.


Recommended Readings:

1. IASB Hand Book

2. Bangladesh Standards on Auditing – ICAB

3. Study Manual on Advanced Auditing – ICAB

4. Contemporary Auditing – Kamal Gupta.

5. Cost Audit and Management Audit – Dutta Chowdhury.

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