- The ICWAI (The Institute of CostAccountant of India) defines Cost Audit as a. “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.”
- To verify the Arithmetical Accuracy of cost books.
- To keep Accounts as per costing principle.
- To follow pre-determined norms and concepts of Cost Accounting.
- To provide all data relating to cost records to the management for decision-making.
- To detect errors and frauds.
- To make internal control more effective.