CAAS - 103 - Cost Audit and Assurance Standard on Overall Objectives of the Independent Cost Auditor and the Conduct of an Audit in Accordance with Standards on Auditing

Cost Audit Standard CAAS 103: Auditor Roles, Risk Assessment, Ethical Compliance, and Evidence Gathering for Cost Statements

The Cost Audit and Assurance Standard (CAAS 103) outlines the objectives and responsibilities of independent cost auditors when conducting audits of cost statements. It emphasizes the auditor's role in expressing an opinion on whether cost statements are prepared in accordance with applicable frameworks and provide a true and fair view of costs. Management is responsible for maintaining cost records and preparing statements. The standard details audit risk components, including inherent, control, and detection risks, and stresses the importance of professional skepticism and judgment. It mandates compliance with ethical requirements and relevant auditing standards, and highlights the auditor's responsibility to obtain sufficient evidence to support their opinion.