AS-7??????

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CA Lokesh Pokharna (Querist)

28 August 2010 is AS-7 applicable to Road contractor?????? if yes then plz tell me considarable points while conducting audit of an Road contractor books..............

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

28 August 2010 AS-7 applicable for long term contract which is starting one Financial year and ending another financial year. So road contractor is also will cover under AS-7, The follwing points mainly we need to see

1. Contract value
2. Budgeted cost for the contract
3. Cost incurred up to date and cost to be committed for further works
4.Work finished up to date
5.Percentage of completion of contract
6. Amount need to be billed in relation to the percentage of completion
7. Amount need to recognised as revenue

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CA Lokesh Pokharna

CA Lokesh Pokharna (Querist)

28 August 2010 very very thnx ....can u tell me good audit procesure n some imp. auditing aspects & areas where i need to give more attation......

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

28 August 2010 Road construction maximum is the Govt Projects. You need to check the

1.Contract term & conditions
2.Contract price
3. Contract time duration
4. Govt, Projects if not finished with in the time limit there will a clause called Liqudity dameges ( Penalty )
5. Work has been done as per the drawings and instruction of the Contract term
6. The work have been properly cerfified by the Govt.Engineer
7. Materials purchase as per the norms of contract
8. Contractors Agreement as per the Standards by the Govt
9. Verification Running RA bills with the quantity certified by the engineer
10 Some time the payment have been released by Govt partly ,balance is considered as retention money it will be released after the period specifed in the Contract, whether that money have been followed and collected

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