Question

What is difference between cost audit management audit and tax audit?

Answer 1

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Cost audit : Cost Audit represents the verification of cost accounts and check on the adherence to cost accounting plan. Cost Audit ascertain the accuracy of cost accounting records to ensure that they are in conformity with Cost Accounting principles, plans, procedures and objective. Cost Audit comprises following;

1) Verification of the cost accounting records such as the accuracy of the cost accounts, cost reports, cost statements, cost data and costing technique and
2) Examination of these records to ensure that they adhere to the cost accounting principles, plans, procedures and objective.


Management audit : Management Audit is a systematic examination of decisions and actions of the management to analyse the performance. Management audit involves the review of managerial aspects like organizational objective, policies, procedures, structure, control and system in order to check the efficiency or performance of the management over the activities of the Company. Unlike financial audit, management audit mainly examine the non financial data to audit the efficiency of the management. Management Audit focuses on results, evaluating the effectiveness and suitability of controls by challenging underlying rules, procedures and methods.


Tax audit : A tax audit is an examination of your tax return by the IRS to verify that your income and deductions are accurate.

A tax audit is when the IRS decides to examine your tax return a little more closely and verify that your income and deductions are accurate. Typically, your tax return is chosen for audit when something you have entered on your return is out of the ordinary. There are three main types of IRS audits: the mail audit, the office audit and the field audit.


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Answer 2

Cost audit is used to management audit risks and and tax audit s used to identify fraud.

Explanation:

• A tax audit is a form of an internal tax revenue system. A cost audit is used as a tool to find out the cost incurred in the business are justified and helpful in deriving future policies. Allowed used as a tool to identify the fraud.

• The tax audit is linked to the tax authorities that carry out the tax laws to determine tax evasion. They are also conducted by internal management.

Learn more about the difference between cost audit management audit and tax audit.

• brainly.in/question/3681996 answered by Strawberry371.