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Cost Audit is a critical review undertaken to verify the correctness of Cost Accounts and to check that cost accounting principles and planning have been efficiently followed. It is noteworthy that India is the only country which has introduced statutory cost audit to regulate about 45 vital industries of the country. Cost Audit has been defined by the Chartered Institute of Management Accountants (CIMA) of Landon as “the verification of cost accounts and a check on the adherence to the cost accounting plan.”
