What are the processes of construction auditing ? What are the roles and benefits of construction auditing? Please refer to the related information in the following article of MISA MeInvoice .
Note: Before learning about construction auditing, you can learn some basic information about auditing in the article below.
1. What is construction audit?
2. The role of construction audit
3. Benefits and contents of construction audit
3.1. Benefits of construction audit
3.2. Contents of construction audit
3. Construction audit process
3.1. Phase 1: Project information survey
3.2. Phase 2: Basic construction audit workflow
Completion of the audit process
Conclusion
1. What is construction audit?
What is construction audit?
Basic construction audit or project settlement audit is the job of an auditing company. Auditors collect information about the project and the project’s investment capital settlement, from which they give their opinions independently.
The primary function of a construction auditor is to provide a systematic and independent examination of the data, records, operations and performance of a construction project for a stated purpose.
The role of construction audit
The main role of construction audit is to increase the reliability of the completed project settlement report and serve as a basis for competent project approval authorities to consider and approve the completed project settlement report.
Accordingly, the opinions given in the construction audit report will be the basis for reviewing key aspects, assessing whether the project complies with legal regulations on construction investment management or not? Does the completed project settlement report accurately and in accordance with the construction settlement situation calculated at the time of reporting or not? Or does it comply with accounting standards and regulations on project settlement or not?
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Some of the notable benefits of construction auditing are:
– Helps businesses reduce costs and time for auditing.
– Complete valid, correct and complete documents in accordance with legal regulations.
– Timely resolve arising problems and major violations such as: Problems in the disbursement process, capital allocation or some other issues in the field of basic construction, etc.
3.2. Contents of construction audit
The contents of construction audit work are:
– Check the validity, reasonableness and legality of projects.
– Check the status of capital allocation lebanon telegram data for the project.
– Consider the level of conformity between the volume of construction work, quantity and type, and volume of equipment calculated from the construction design.
– Check the correctness and reasonableness when applying project construction standards and prices
and regulations on determining project cost revenues.
– Check the reasonableness of costs when type of therapy that can constructing a project: investment costs, equipment costs, construction costs, and other costs.
– Check the status of outstanding debts, equipment canada data and materials of the project.
– The completeness and appropriateness of the project settlement documents when compared with the project settlement instructions issued by the Ministry of Finance.
