What Is Cost Audit?

It is an audit process for verifying the cost of manufacture or production of any article, on the basis of accounts as regards utilisation of material or labour or other items of costs, maintained by the company.

In simple words the term cost audit means a systematic and accurate verification of the cost accounts and records and checking of adherence to the objectives of the cost accounting.

As per ICWA London’ “cost audit is the verification of the correctness of cost accounts and of the adherence to the cost accounting plan.”

In cost audit, auditor has to perform the following duties –
• Examine the correctness of the cost records maintained by the concern and
• To report as to whether the cost accounting plans have been adhered to or not.

Cost audit refers to the detailed checking of the costing system, the techniques used and the accounts to verify their accuracy. It also ensures that the company is adhering to the objective of cost accountancy. See the details on link below for more information:
COST AUDIT

Cost audit is the periodical review,examination and verification of cost accounting records and added information required.

Cost audit is a verifying records of cost of manufacturing or  production of  material..
The cost auditor finds that cost and effective work of labor.

The Audit Which Is Done Through Cost is Known as Cost Audit

The ICWAI defines cost audit as " system of audit introduced by the government of India for the review, examination and appraisal of the cost accounting records and attendant information required to be maintained by specified industries"

Icma of england defines the term COST AUDIT as
the verification of cost accounts and a check on the adherence to the cost accounting plan