By definition, Cost Audits determine the correctness of cost accounting records to confirm that they are in conformity with Cost Accounting principles, plans, processes and objective and includes the verification of the cost accounting records such as the accuracy of the cost accounts, cost reports, cost statements, cost data and costing technique and inspection of these accounts to confirm that they observe the cost accounting principles, plans, procedures and objective.

By utilizing numerous management accounting methods, cost audit results in reduced cost of production, enhanced competitive advantage, and profit growth. At the macro level, it increases tax collection, reduces inflation, and gives a boost to dividend, investment and economic development.

It pinpoints areas of weaknesses, hidden losses and unaccounted inefficiencies which eventually result in negative effects on the financial health of a business. Cost audits aids in identifying early warning signal for corrective actions.

At RSM Afghanistan, we have accumulated a vast quantum of experience in carrying out cost audits both for the Public as well as the Private sector. Some of our major clients are Sui Northern Gas Pipelines Limited and Oil and Gas Regulatory Authority.