Currently, businesses are very interested in basic construction accounting services because this is one of the jobs that helps increase customer confidence in the completed project settlement report, and this is also the basis The basis for private investors and competent management levels to rely on the completed project settlement report to approve the settlement and consider whether the completed project settlement report is in accordance with the situation and provisions of law. the law. 

In the article below, CPA HCM will share information about capital construction audit reports and capital construction audit processes.

WHAT IS BASIC CONSTRUCTION AUDIT?

Capital construction audit, also known as project settlement audit, is the job of auditors who are responsible for collecting information about the project and finalizing investment capital. of the project and thereby independently give opinions to the project management board or investors…

BENEFITS WHEN USING CONSTRUCTION AUDIT SERVICES

Construction auditing contributes to increasing the reliability of users of project finalization reports, investors, shareholders and project partners as well as competent management agencies.

Using basic construction audit services helps businesses save costs and time conducting audits.

The service will conduct capital construction audits according to a process that helps complete complete and correct documents in accordance with legal regulations.

Auditors with experience in auditing will be able to handle issues that need to be controlled and correct violations that occur in the field of capital construction such as disbursement process, capital allocation or management.

3-STEP PROCESS FOR AUDIT OF PROJECT SETTLEMENT

Basic construction audit is carried out according to the following process:

Step 1: Plan a construction audit

The overall audit plan describes the scope and method of performing the audit. The overall audit plan needs to be complete and detailed to serve as a basis for establishing an audit program.

The audit program includes determining the content, schedule and scope of audit procedures necessary to implement the overall audit plan to ensure the audit process is carried out effectively and properly.

After completing the audit plan, this table will be sent to the client along with a list of documents that need to be provided to the auditor and staff conducting the audit.

Step 2: Perform the audit

When the audit team arrives at the working location arranged and arranged by the client, the two Parties will proceed with the delivery and receipt of records and documents that the audited unit has prepared according to the sent list. before. To ensure that the records and documents assigned to the audited unit will be kept and preserved by responsible audit staff, avoiding loss or damage of documents without the most commitments and constraints. determined.

Content of project finalization audit is completed:

Working process in the process of performing basic construction audits:

1. Check the project's legal documents:

- Compliance with investment and construction orders and procedures according to the provisions of law on investment and construction;

- Comply with the order and procedures for selecting contractors according to the provisions of law on contractor selection;

- The conformity of the negotiation and signing of contracts between the Investor and the Contractors compared to the provisions of law on contracts and the winning decision of the competent authority.

2. Check investment capital sources

- Check and compare the capital structure and the amount of investment capital implemented and paid for each capital source each year with the approved amount.

- Check the compatibility between the actual use of investment capital sources and the investment capital structure determined in the investment decision.

- Check whether the adjustment to increase or decrease the investment capital of the project complies with the prescribed regime and authority.

- After checking the investment capital sources of the investment project, the auditor will make comments on the allocation, payment, lending and use of the project's capital sources.

3. Check investment costs

- Based on the proposed investment cost settlement by project and completed items, the construction audit staff will perform sequential inspections according to the cost structure recorded in the total investment:

- Compensation costs for site clearance and resettlement;

- Project construction costs;

- Equipment costs;

- Project management costs;

- Construction investment consulting costs;

- Other costs.

After performing the audit content, when it is found that some necessary documents are missing to serve the audit process as well as ensure the client's completed project audit records are as complete as possible according to regulations. required by law, auditors need to proactively request to provide minimal additional documents to clients.

During the audit process, it will not be based on small errors discovered in the completed project settlement report. Errors will be reported to the respective management levels.

The auditor will report any errors that affect the results of the completed project finalization report discovered during the audit.

Step 3: Finish the construction audit

Handle paperwork in accordance with current laws;

At the end of the audit process, the auditor will perform the following procedures:

Analyze and review overall audit results;

- Prepare audit reports;

- Handle work that arises after issuing the construction audit report.

After completing the audit work, the auditing company will issue a draft audit report and send it to the audit client, along with a data protection plan. The draft audit report states the auditor's opinion on the issues presented in the completed project final settlement report, including the following specific contents:

- Legal documents of investment projects;

- Investment funds;

 - Value of completed construction volume;

- Value of completed equipment volume;

- Finalization of other expenses;

- Investment costs are not included in asset value;

- Value of assets handed over and put into use;

- The situation of outstanding debts, supplies and equipment.

Currently, the demand for auditing in businesses is increasing due to the process of globalization, so auditing services have also expanded from there, including basic construction auditing. CPA HCM Company with more than 10 years of experience in the accounting and auditing industry, especially with a team of experienced experts, will help businesses carry out the audit process accurately and in accordance with the law.

Through CPA HCM article, customers can also imagine the work we will perform in a capital construction audit and the benefits of using this service. Customers who are interested or have comments or questions that need to be answered about the basic construction audit process or other services can contact Hotline 1900 0380 for timely advice and support.