CPT V24P7-Art1 (Content).pmd - Taxmann

Accounts & Audit
objective and to help the cost auditors, ICAI
(formally known as ICWAI), has issued this
revised standard.
2.2 Summary - This standard summarizes the
following topics:
2.2.1 Objective - The objective of this Standard
is to help the members of ICAI in planning
for their audit of cost statements to achieve
the excellence.
2.2.2 Scope - This Standard covers the auditors’
responsibility to plan an audit of cost statements
and other related information.
2.2.3 Definitions - This standard besides other
definitions, defines the following:
Audit, Auditee, Audit Risk, Audit Strategy,
Cost Audit, Cost Auditor, Audit Team,
Misstatement.
2.2.4 Requirements - This section explains the
prerequisites for a cost audit prior to entering
into planning phase, post-planning stage and
developing and executing the cost audit plan.
2.2.5 Application Guidance - This section explains
the aspects related to cost audit planning in
more detail so as to ease out the use of this
standard for the members of ICAI.
2.2.6 Effective Date - This standard is to be
applied for planning the audit of cost Statements
for the period commencing on or after 1st
April, 2012.
Source: http://www.icwai.org/icwainew/
CAASB/docs/CAAS-101.pdf
3. REVISED COST AUDIT AND
ASSURANCE 102, “COST AUDIT
DOCUMENTATION” - JULY 17, 2012
3.1 Background - Documentation is the one of
the most important steps of any audit. It is
taken as: no documentation, no audit done.
Therefore, considering the importance of
documentation, the ICAI (formally known as
ICWAI) has issued this revised Standard on
Documentation.
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3.2 Summary - This standard summarizes the
following:
3.2.1 Objective - The objective of this Standard
is to provide guidance to the members of ICAI
to prepare documentation with respect to the
audit of the cost statements and other related
information.
3.2.2 Scope - This Standard deals with the
cost auditor’s responsibility to prepare audit
documentation for the audit of cost statements
and other cost related information.
3.2.3 Definitions - This standard besides other
definitions, defines the following items:
Audit, Audit Documentation, Audit File,
Audit Working Papers, Cost Auditor.
Source: http://www.icwai.org/icwainew/
CAASB/docs/CAAS102.pdf
3.2.4 Requirements - This section of the Standard
states the requirements for a cost auditor for
documenting and recording the audit procedures
performed, relevant audit evidence obtained
and conclusions reached.
3.2.5 Application Guidance - This section explains
the aspects related to cost audit documentation
in more detail so as to ease out the use of this
standard for the members of ICAI.
3.2.6 Effective Date - This standard is to be
applied for planning the audit of cost Statements
for the period commencing on or after 1st
April, 2012.
4. FILING OF COST AUDIT REPORT AND
COMPLIANCE REPORT IN THE
EXTENSIBLE BUSINESS REPORTING
LANGUAGE (XBRL) MODE - JULY 26,
2012
4.1 Background - XBRL is a language for the
electronic communication of business and
financial data for business reporting. It is a
new format of reporting providing major benefits
in the preparation, analysis and communication
of business information. In a way it helps in