07 Nov 2024
gdpy
Cost Auditor, 5 to 10 years in Mumbai
Shri Swami Samarth Engineers
Mumbai
5-10 Years
Cost Accounting, Cost Analysis, Management Accounting, Asset Accounting, Bank Accounting, Financial Accounting, Accounts Receivable, account finalisation
Job Description
Position: Cost Auditor
Qualification: B.com,M.com,MBA
Experience: 5 to 10 years
Location: Mumbai
Job description
Qualification: B.com,M.com,MBA
Experience: 5 to 10 years
Location: Mumbai
Job description
Role of Cost Auditor
In order to perform his work as a cost auditor, a cost auditor should clearly understand his position and also what he is expected to do. In other words he should understand the role which he is required to play.
Role of a cost auditor is difficult to be decided because in the provisions of the Companies Act, 1956 it is not stated clearly.
- A Cost auditor is directed to be appointed by the Central Government for the cost audit of the company and after completing the cost audit he submits his cost audit report to the Central Government and also to the Board of Directors of the company and in this sense his role may be regarded as that of an agent.
- The cost auditor performs the cost audit of the company as directed by the Central Government and so we can say that he works in the capacity of an agent of the Central Government. But the cost auditor is paid his remuneration for the cost audit work by the company and not by the Central Government.
The cost auditor is required to play a role of an independent professional person. He is required to examine and verify the correctness of the cost accounts books and other costing records and without coming under influence of any person in the management of the company he is required to present his findings, observations, deficiencies in the operations of the company and errors and frauds found out by him honestly in the cost audit report prepared and submitted by him.
Responsibilities of Cost Auditor
In the past, cost auditors were held responsible for negligence in their duties only to the appointing authorities i.e. the Central Government or the company which appointed them. With the change in time the responsibilities of the cost auditors have increased and they are held liable to the third parties also. The responsibilities of a cost auditor can be stated as under:
Responsibility for negligence:
If a cost auditor does his work of cost audit without taking due care or if he fails to do his assigned work by using the expected level of skill or standard expected from a professional person, it is regarded as negligence on the part of the cost auditor. Due to the negligence shown by the cost auditor while performing the cost audit, he becomes responsible to pay compensation for damages suffered by the appointing company or by any other third parties.
If a cost auditor does his work of cost audit without taking due care or if he fails to do his assigned work by using the expected level of skill or standard expected from a professional person, it is regarded as negligence on the part of the cost auditor. Due to the negligence shown by the cost auditor while performing the cost audit, he becomes responsible to pay compensation for damages suffered by the appointing company or by any other third parties.