Value Addition in Cost Audit - Non Financial Parameters Focus for MSMEs

Abstract

This article explores the aspect of real value addition to Cost Audit, which is getting embroiled in the compliance mode, actively being pursued by the auditee and the auditors. This article is aimed at being a sequel to the article by our past President CMA M. Gopalakrishnan, who has spelt out his views on Future Proofing Cost Audit, which are thought provoking. The article details the approach for making cost audit effective from the auditee point of view and satisfying from the auditor point of view. While the non-financial parameters had only a brief reference in the said article, the author would like to share his personal experiences on the value addition thru non-financial performance metrics, which are vital especially to the MSME sector. The concept is equally applicable to non MSME sectors also.