Question

Cost audit was introduced in India for the first time in the year​

Answer 1

Answer:

Cost audit is the independent audit of cost records maintained by companies. The concept of cost audit was introduced in 1965 when Companies Act, 1956 was amended to incorporate the provisions relating to the maintenance of cost accounting records and cost audit

Answer 2

Cost audit was introduced in India for the first time in the year​:

A cost audit is an impartial examination of a company's expense data. When the Companies Act of 1956 was revised in 1965 to include regulations pertaining to the preservation of cost accounting records and cost audits, the notion of cost audit was born.

In India, what is a cost audit:

Cost audits are needed for companies operating in particular industries in India, such as manufacturing, mining, and services. A cost audit verifies the cost account and serves as a check on the company's cost accounting standards compliance.

Explanation in detail:

What does cost audit include in India:

Cost auditing aids in the discovery of mistakes and scams. The management receives precise and dependable data on which to base daily decisions such as price-fixing. It aids in cost containment and reduction. It makes the system of standard costing and budgetary management easier to use.

Verification of cost accounting records, such as the correctness of cost accounts, cost reports, cost statements, cost data, and costing methods are all part of a cost audit.

Examine these records to see if they follow the cost accounting principles, plans, processes, and goals.

accountant with a budget:

A cost audit will be done by a cost accountant nominated by the Board; any failure on the side of the firm would be punished with a fine of not less than INR 25,000, but not more than INR 5 lakhs.

What is the purpose of a cost audit program:

Program for Cost Auditing. A cost audit program is a thorough plan for the auditing work to be done, laying out the methods to be followed in verifying each item in the cost statements and estimating the time necessary.