Proprietary/Spcl/Cost Audit for SMSA - The 50th Post

FEATURES	PROPRIETARY AUDIT	SPECIAL AUDIT	COST AUDIT
1. NATURE	Covers all aspects of safeguarding of assets, use of business funds and recording of transactions;	Conducted by CA appointed by Central Government to protect the interest of stakeholders;	Review of examination & appraisal of cost accounting records;
2. PURPOSE	Ensure business funds are protected in the public interest;	Ensure effective & timely steps of control & mgmt;	Critical review of cost statements & recommends;
3. SCOPE	Proper use of fixed assets & its safeguard, prevents misuse of funds & checks transaction recording;	Statutory audit PLUS prescriptions of Central Government;	Reviews cost accounting system; variation analysis ensuring efficacy;
4. FEATURES	Covers area of financial accounting but it tests economy, efficiency & faithfulness;	Compliance of sound business principles or prudent commercial practices & prevents from serious injury or insolvency;	Correctness of cost of production and audit of cost accounting records;
5. AREAS	Cash & other subsidiary books; Records & registers as mandated by Sec. 227 & CARO;	Cash & other subsidiary books and such other areas prescribed by Central Government (CG);	Raw material, WIP, Allocation & Distribution of direct & indirect cost & overheads;
6. CAPACITY	Chartered Accountant or member/director under CAG;	Chartered Accountant as appointed or authorised by CG;	Member of ICWAI holding Certificate of Practice appointed by Board with previous approval of CG;
7. PERIOD	Alongwith Statutory Audit though not mandated under Companies Act;	Only when CG directs & such direction will give the periodicity of audit;	Compulsory for every Financial Year as specified by Government;
8. REPORTS	To Management & members in certain cases;	To the Central Government;	TO CG with a copy to company and may cause to be published;

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