Elements of Auditing

Describe the various Methods of Absorption of Factory Overheads.

METHODS OF ABSORPTION: There are many methods by which absorption rate can be computed. The difference lie between them only on the base selected the numerator in all the methods is the total overheads for the department and denominator is base ...

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What is a Collection of Overheads in Overhead Distribution?

Elements of Auditing

The first step in overhead distribution is collection of overheads. This means the ascertainment of the total amount spent on each item of overheads during a particular period. Lets see in details. Standing Order Numbers. The term Standing Order ...

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What does mean by Idle Time and Overtime of Workers?

Elements of Auditing

IDLE TIME. When workers are paid on the basis of time, there may be some difference between the time paid for and the time actually spent on production. This difference is known as idle time. In other words, idle time is a period or duration for ...

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What is Time Booking of Labor? Discuss the Methods used for Time Booking of Labor.

Elements of Auditing

TIME BOOKING: Under time-keeping methods we simply record the time spent by a worker in the factory. Such record does not show how that time was utilized by him i.e. how much time he spent on the jobs entrusted to him and for how much time he ...

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What is Material Control? Discuss its Objectives, Advantages and Basic Requirements.

Elements of Auditing

MATERIAL CONTROL: Material forms important part of cost of production of a product. It is therefore essential for proper control of material and its supplies during the production. Proper control will bring efficiency in business. Material ...

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What is the difference between Financial Audit, Cost Audit and Management Audit?

Elements of Auditing

The difference between Financial Audit, Cost Audit and Management Audit: Financial Audit. Main elements of Financial Audit are: It is an effort to ensure a true and fair view of the state of affairs of the company through the Profit and Loss ...

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What is Management Audit? Define the Objective and Limitations of Management Audit.

Elements of Auditing

The management audit is an examination, scrutiny and appraisal of the plans, policies, objectives, means of operation and the use of physical facilities. This review the policies and the actions of management in turn. It will normally be so ...

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What is Cost Audit Program?

Elements of Auditing

Cost audit programme is a coordination of the work to be done, the work distributed among the audit staff and the time within which the assignment has to be completed. The cost auditor has to submit his report to the central government with a copy ...

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State the Advantages and Limitations of Cost Audit.

Elements of Auditing

Advantages and Limitations of Cost Audit. Cost audit is the verification of correctness of cost accounts and of adherence to cost accounting plans. The primary object of cost audit is to verify whether cost have been ascertained on the basis of cost ...

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What is the difference between Cost Audit and Financial Audit?

Elements of Auditing

Difference between Cost Audit and Financial Audit: Accounts: Cost Audit is an audit of cost accounts, cost statements and cost accounting plan. Whereas, Financial Audit is an audit of financial accounts, supporting vouchers or documents and ...

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What is Cost Audit? Discuss Cost Audit Forms and Objectives.

Elements of Auditing

Meaning of Cost Audit: Cost Audit is the specific application of auditing principles and procedures in the field of cost accounting. It has been defined by London as "The verification of cost accounts and a check on the adherence to the cost ...

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What are different methods of Costing? State the industries to which they can be applied.

Elements of Auditing

The different methods of costing are classified according to the nature of operations. The main methods of ascertaining cost aJob costing, contract costing, batch costing, unit costing, process costing, operating costing, multiple costing and ...

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Elements of Auditing

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