I am glad to share a very good elaboritive and effective article on the importance of cost audit written by Mr. Ashish K Bhattacharya, Advisor (Advanced Studies) of ICAI(CMA) and published in 24.12.12 edition of Business Standard, a leading daily news paper of economic affairs.
The author has opinion that Cost Audit is very distinct from two other very popular forms of audit which are Financial Audit and Internal Audit because Cost Audit covers areas beyond the scope other audits.
I am completely in agreement with the opinion of author since as a guest/ visiting faculty to leading management schools on the subject of cost management, I used to draw the focus of students on three most important drivers of today's global business on sustainable basis which are cost, quality and delivery. These three drivers ensure the sustainability of business since almost every year many fortune 500 companies qualify first time in the list which makes big challenge on sustainable business model. In country like India the cost driver plays more important role keeping in view of low income profile of our countrymen.
Cost Audit is an important tool distinct from all other forms of audit, which paves the way to build strong cost management system in the company and enables the company to stay ahead in cost competitiveness which is an important factor in today's sustainable global business model, as mentioned above.
Adding to it further, I strongly believes that Cost Audit can play a very vital and crucial role in the inclusive growth model of our country, without which any effort on growth is incomplete.
I invite the views and thoughts on the cited subject.
Regards,
CMA Pankaj Jain
CAclubindia
