What are the areas of Importance for Internal Audit of Construction Firm?Let me know ......
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Query relating to Audit
Replies (7)
For a constuction firm , interncal controls for following areas may be checked thourghly,
Contract revenue
Contract expenses
Work in progress
Site cash ect,,,,
Work certified and not certified....Amount carried to Profit and loss..
Evaluation and Control over systems to decide WIP,and Consumptions of Basic RM,such as steels,cement,Bricks.
your query will be resolved if you will be well versed with the acoounting standard 7 on construction contract. do one thing explore the accounting standard file from the files uploaded in some files you ll get the checklist attached therewith i had seen . so do little bit of homework
first thing you have to do, you have thoroughly check the & understand the Internal control system of construction company.
For Internal Audit, My view
Project Documents,
Engineer's Plan,
Whether legal followed,
Whether approved by passing authority,
RM pur authority,
RM pur bills with challan,Gate pass & other supporting,
Labour Register,Contract Agreement,
RM Issue Process,
Work in Progress,
Cash related Control,
Also read AS 7
Its better to go through AS-7 before starting the audit.
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