Cost And Management Audit (CMAD) (Paper-17) CMA Final Group 4

SECTION A: COST AUDIT [50%]

1. Basics of Cost Audit - 5%

• Nature and Scope of Cost Audit 
• Genesis of Cost Audit 
• Objectives of Cost Audit 
• Utility and Advantage of Cost Audit 
• Cost Accounting Standards 

2. Companies (Cost Records and Audit) Rules, 2014 (as amended) - 10%

3. Cost Auditor - 10%

• Definition 
• Cost Auditor’s Eligibility, Qualifications, Disqualifications, Appointment, Resignation, Rotation, Remuneration, Removal, Rights and Duties, Liabilities 
• Professional Ethics 
• Duties of a Cost Auditor to Report Fraud – Section 143 of the Companies Act 2013 
• Punishment for Fraud (Section 447 of the Companies Act, 2013) 
• Punishment for False Statement (Section 448 of the Companies Act, 2013) 

4. Overview of Cost Accounting Standards and GACAP - 5%

• Cost Accounting Standards 
• Guidance Notes on Cost Accounting Standards 
• Generally Accepted Cost Accounting Principles (GACAP) 

5. Cost Auditing and Assurance Standards - 5%

• Cost Auditing Standards - Overview 

6. Cost Audit Programme - 5%

• Introduction 
• Factors in Planning Cost Audit Assignment 
• Cost Audit Programme

7. Cost Audit Documentation, Audit Process, and Execution - 5%

• Cost Audit Documentation 
• Audit Process 
• Practical Steps of Audit Process 

8. Preparation and Filing of Cost Audit Report - 5%

• Introduction 
• Critical Elements of Cost Audit Report and Related Evidence (Physical and Digital) 
• Qualified Audit Report 
• Adverse Audit Report 
• Filing of Cost Audit Report to MCA in XBRL Format (as per TAXONOMY)

SECTION B: MANAGEMENT AUDIT [25%]

9. Basics of Management Audit - 5%

• Definition 
• Nature and Scope 
• Need for Management Audit and Reporting 
• Audit of Management Process and Functions 
• Establishing reliability of information 
• Role of CMAs in Management Audit 

10. Management Reporting Issues and Analysis - 5%

• Introduction 
• Performance Analysis 
• Capacity Utilisation Analysis 
• Productivity and Efficiency Analysis 
• Utilities and Energy Efficiency Analysis 
• Key Costs and Contribution Analysis 
• Profitability Analysis 
• Working Capital and Liquidity Management Analysis 
• Manpower Analysis 
• Other Areas Suggested to be covered in the Report on Performance Analysis 
• Management Accounting Tools 

11. Management Audit in Different Functions - 5%

• Corporate Objectives and Culture 
• Corporate Services Audit 
• Corporate Development Audit 
• Evaluation of Personnel Development 
• Consumer Services Audit 
• Audit of Environmental Pollution Control 
• Audit of Energy and Utilities - Generation and Consumption 
• Productivity Audit/ Efficiency Audit 
• Propriety Audit 
• Corporate Social Responsibility (CSR) Audit 
• Social Cost – Benefit Analysis Audit 

12. Evaluation of Corporate Image - 5%

• Introduction 
• Audit Checks of Different Managerial Functions 
• Audit Checks of Various Corporate Divisions/Departments 
• ESG Audit

13. Information Systems Security Audit - 5%

• Overview 
• Compliance and Security Framework 
• Cyber Security and Cyber Forensics 
• IT Audit in Banking Sector

SECTION C: INTERNAL CONTROL, INTERNAL AUDIT, OPERATIONAL AUDIT, AND OTHER RELATED ISSUES [15%]

14. Internal Control and Internal Audit - 5%

• Internal Control-Concept 
  • Objectives of Internal Control 
  • Scope of Internal Control 
  • Structure of Internal Control 
  • Limitations of Internal Control 
  • Evaluation of Internal Control 
• Internal Control and the Auditor 
• Internal Auditing – Evolution of the Profession 

15. Operational Audit and Internal Audit under Companies Act, 2013 - 5%

• Introduction 
• Preparation for an Audit 
• Audit Engagement Letter 
• Role of CMAs in Internal Audit, Operational Audit and Managers 
• Internal Audit under Companies Act, 2013 
• Internal Audit and Companies (Auditor’s Report) Order 
• Internal Audit in Companies under manufacturing sector 

16. Audit of Different Service Organisations - 5%

• Audit of Hospitals 
• Audit of Hotels 
• Audit of Educational Institutions 
• Audit of Co-operative Societies 
• Audit of Self-Help Groups 
• Audit of Non-Government Organisations (NGOs) 
• Audit of Local Bodies 
• Audit of Government Expenditure 
• Propriety Audit in the context of Government Audit 
• Audit of Commercial Accounts

SECTION D: FORENSIC AUDIT AND ANTI-MONEY LAUNDERING [10%]

17. Forensic Audit 17.1 Introduction to Forensic Audit - 5%

• Fraud Risk Management 
• Financial Forensics and Forensic Audit Techniques 
• Ethical Considerations and Code of Conduct in Forensic Audit 
• Professional Opportunities 

18. Anti-Money Laundering - 5%

• International Standards on Combating Money Laundering and the Financing of Terrorism & Proliferation 
• Guidance for a Risk-Based Approach for the Accounting Profession