Difference B/W Cost Audit And Financial Audit

 Cost Audit And Financial Audit Comparison

The difference b/w cost audit and financial audit is given below. we differentiate them with the following points.

1. The main difference b/w cost audit and financial is that cost auditor is appointed by management whereas financial auditor is appointed by the shareholders/members.

2. Cost audit is performed by a practicing cost accountant whereas financial audit is performed by a practicing chartered accountant.

3. Cost records, cost statements, cost accounts are analyzed by the cost auditor, and Books of accounts, Documents, Vouchers, and Financial Statements are analyzed by the Finacial auditor.

4. Cost audit is compulsory for all companies and financial audit is compulsory for the companies engaged in the manufacturing business.

5. Cost  Auditor submits the report to the shareholders at the annual general meeting of the company whereas the Financial Auditor submits the report to the board of directors at the board meeting.

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