Question

list out the powers, duties and liabilities of a cost auditor 10 mark question​

Answer 1

$\huge\underline\mathtt{\red{A}\pink{n}\blue{s}\purple{w}\green{e}\pink{r}}$

Rights of a cost auditor:-

(i) He has a right of access at all times to the books of accounts and vouchers of the company.

(ii) He has a right to get such information and explanations from the officers of the company as he may think necessary for the performance of his duties as an auditor.

(iii) He has a right to get all facilities and assistance from the company to perform his duties as an auditor.

(iv) The company and every officer, in default of not providing the accounts, vouchers, information, explanations etc. to the auditor, shall be punishable with fine.

Duties and responsibilities:-

(i) He is liable to the Company if he does not perform his duties properly or is guilty of negligence.

(ii) He also owes a legal responsibility to third parties who might have been misled by his audit certificate and acted in reliance thereon.

(iii) He should maintain his working papers as an evidence of his having carried out his duties.

(iv) He should not disclose any confidential information which he might have acquired in the course of his work and should not use such information for personal gain or gain of a third party.

(v) He is responsible to answer any query required by the Central Government on a scrutiny of the cost audit report submitted by him.

(vi) He is criminally liable for falsification of books. If he is found guilty of falsification, he shall be punishable with imprisonment for a term which extends to seven years and he shall also be liable to fine in addition.

$\large\mathtt{\color{red}{❥} \color{aqua}{Hope \: }\color{lime}{it \: }\color{magenta}{helps \: }\color{navy}{you \: }\green{.....}}$