Stat audit
This query is : Resolved
Tulika Kumari
(Querist)
16 November 2011
can anyone mail me the audit progamme for construction company (stat audit)
CA SUMiT PATWARi
(Expert)
17 November 2011
I dont have a proper audit programme. But then, these may help you prepare an audit program.
Analyse the works company carry out and the kind of jobs the company undertakes. Perform a walkthrough for such transactions, checking all the documents and meeting and discussing with all the concerned persons.
Analyse the accounts records maintained by company, its system of accounting, accounting policies, standard operating practices, etc. Understanding the business of the client (indepth) will help you understand the key areas and in the course of understanding only you will come to knwo about the "risk areas" in a construction company audit.
Sub-divide the works of the company into various small segments - for example for one multi storey bldg project, break each activity of the project to be analyse, audited and commented upon.
You will be able to draft an audit programe, review it and finalise the audit programe... its a continuous process. you can modify the audit programme as and when the audit progresses.
Concentrate on the areas like :-
Revenue recognition (very important)
Work Completion certificates
Realisation of money dues
Government clearances ; various permits ; allowance for the comstruction to be undertaken (all these are very important)
Land Deeds and whether construction is permitted on such land
Stock valuation and controls
Terms of Agreements executed, clauses of agreement and their fulfillment.
Provisions to be made
Statutory compliances are always important
Analyse the works company carry out and the kind of jobs the company undertakes. Perform a walkthrough for such transactions, checking all the documents and meeting and discussing with all the concerned persons.
Analyse the accounts records maintained by company, its system of accounting, accounting policies, standard operating practices, etc. Understanding the business of the client (indepth) will help you understand the key areas and in the course of understanding only you will come to knwo about the "risk areas" in a construction company audit.
Sub-divide the works of the company into various small segments - for example for one multi storey bldg project, break each activity of the project to be analyse, audited and commented upon.
You will be able to draft an audit programe, review it and finalise the audit programe... its a continuous process. you can modify the audit programme as and when the audit progresses.
Concentrate on the areas like :-
Revenue recognition (very important)
Work Completion certificates
Realisation of money dues
Government clearances ; various permits ; allowance for the comstruction to be undertaken (all these are very important)
Land Deeds and whether construction is permitted on such land
Stock valuation and controls
Terms of Agreements executed, clauses of agreement and their fulfillment.
Provisions to be made
Statutory compliances are always important
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- EPF ECR NEW FILE SEP 17TH 2026
- How to Handle Active E-Invoices in GST Portal Deleted from Tally?
- Capitalgain tax purposes for valuation report compulsory
- Clarification Requested: Gift → NRO → NRE → Overseas Transfer - USA/CANDA (FEMA & Tax Compliance)
- Under marginal scheme
- Non filing of I T Returns
- SECTION 393(3) TAX ON CASH WITHDRAWAL
- GST on Renting godown to KFCSC for Storage of Raagi
- Import of Software Service.
- TDS on Fixed Assets purchased
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
