Cost Audit: Cost audit is a systematic examination of a company’s cost accounting records, procedures, and practices to ensure their accuracy, compliance with relevant laws and regulations, and effectiveness in achieving cost control and cost reduction objectives. The primary aim of cost audit is to verify that the company’s cost accounting system is producing reliable and accurate cost data that can aid in decision-making and performance evaluation. Cost audit is particularly important in industries where cost control plays a critical role, such as manufacturing. It helps identify areas of inefficiency, highlights potential cost-saving opportunities, and contributes to overall financial transparency.