This paper investigates the strategic role of cost auditing beyond its traditional compliance function. It proposes a conceptual framework that links cost audit findings to targeted performance improvement initiatives. The research focuses on how a meticulous, independent examination of cost records can systematically expose operational and procedural inefficiencies, including wastage, idle capacity, and cost variances. Built on secondary data, the paper identifies specific analytical techniques like variance analysis and benchmarking to pinpoint and quantify inefficiencies. By systematically analyzing cost structures, resource utilization, and operational processes, cost audits reveal areas of waste and underperformance that hinder profitability. The paper emphasizes the role of cost audit in enhancing managerial decision-making, optimizing resource allocation, and fostering organizational efficiency, thereby contributing to sustainable growth and improved financial performance. The findings suggest that by leveraging data from cost audits, management can make informed decisions to optimize resource utilization, streamline processes, and ultimately enhance profitability and competitiveness. The paper concludes with recommendations for integrating cost audit processes with a company's broader performance management strategy.