- June 21, 2020
- Posted by: Founda media
BASIC CONSTRUCTION AUDIT SERVICES – AACS
Auditing the investment capital settlement report of completed construction projects is to use a group of experts and highly qualified professional staff with special formal training in auditing the final settlement of completed construction investment capital to provide customers with the most perfect service, with the highest level of quality. Highly reliable….
Professional basic construction audit service
I. PRINCIPLES, BASIS, OBJECTIVES AND IMPLEMENTATION METHODS
Basic principles of implementation Audit Report Finalization of investment capital of completed construction projects means using a group of experts and highly qualified professional staff with special formal training in auditing finalization of completed construction investment capital in order to provide customers with the most perfect, highly reliable service.
– Construction law and guiding documents;
– Decrees and Circulars guiding in the field of construction;
– State norms and unit prices, price notices of the Joint Department of Finance and Construction;
– Government Decree on independent audit (Decree No. 105/2004/ND – CP dated March 30, 2004)
– Vietnam Auditing Standards issued;
– Circular No. 19/2011/TT-BTC dated February 14, 2011 of the Ministry of Finance guiding the settlement of investment capital;
– Circular 33/2007/TT-BTC dated April 9, 2007 of the Ministry of Finance; Circular 98/2007/TT-BTC dated August 9, 2007 of the Ministry of Finance guiding the settlement of investment capital.
– Project documents according to State regulations provided by the Investor;
– Project implementation plan and project management regulations.
Auditors provide independent opinions confirming the Completion Finalization Report, Project Investment Capital Finalization Report, as well as other issues that the Investor and state management agencies need to pay attention to. , and at the same time make recommendations to the Investor and related parties to determine reasonable costs and improve the quality of documents, procedures, and project management processes in accordance with State regulations and in accordance with regulations. with actual conditions during project implementation.
Audit work must always comply with the principles of independence, objectivity and confidentiality in accordance with audit standards and commitments to customers.
Methods of implementation
In principle: Based on the agreement on the overall audit plan between the two parties, the audit work will be carried out immediately during the project implementation process according to each main item (contract package), since implementation. project until the end of the project, completing the investment capital settlement report of the projects.
Method of conducting project audit:
– The audit will be carried out in stages for each completed item (contract package) depending on the investor's settlement situation. When there is a need to finalize the final cost value of each completed item (contract package), the investor will notify the Audit firm 15 days in advance to prepare the audit plan. The auditing company is responsible for preparing a detailed schedule and reporting it to the Investor for approval as a basis for performing the audit.
– When the item (bid package) completes settlement, the investor will notify the auditing company to audit the final settlement price of each item (bid package). The time to audit the settlement value of each item (contract package) is no more than 01 month from the date the investor provides complete settlement documents and records. At the end of the audit period, the auditing company will provide the investor with draft audit data for each implementation period.
– When the project is completed and the investor provides the Investment Capital Finalization Report on completion of the entire project along with all relevant documents, the auditing company will carry out the work. Audit Report Finalize the project within no more than 4 months from the date the investor provides complete dossiers and documents to finalize the entire project. At the end of the audit, the auditing company will provide the investor with a draft Investment Capital Finalization Report of the entire project. No more than 15 days after receiving the investor's official response to the draft Audit Report (in Vietnamese), the auditing company will provide the investor with an official audit report on the decision. Calculate the investment capital of the entire project.
AACS's main auditing methods include:
- Conduct inspection from general to detailed and vice versa.
- Regularly discuss with investors, main contractors and other specialized officials.
- Interview investors and other relevant parties
- Carry out control system reviews and check data
- Apply other tests and audit procedures as deemed necessary in each specific case.
- Together with the Project Management Board, the investor and relevant parties, discuss specifically our recommendations stated in the Audit Report. All information exchanged must be approved by the investor before reporting to the authorities or other relevant agencies.
- Coordinate with the investor to explain the requirements of customers and competent state agencies when necessary...
What is the basic construction audit implementation process that you need to understand?
Steps to plan a basic construction audit:
(Plan -> Perform audit -> Prepare Report -> Distribute Audit Report
In each stage, each completed bidding package will be audited according to the investor's request. AACS conducts the work according to the following steps:
- Preparation step;
- Collect information and review activities;
- Conduct audits;
- Prepare draft audit reports;
- Communicate and agree with the investor on the Audit Report, and at the same time guide and advise customers on issues that need attention.
II. CONTENT OF FUNDAMENTAL CONSTRUCTION AUDIT WORKS
Check and evaluate the legality of the investment and compliance with project investment and construction procedures:
- Gather, arrange and classify records and documents, check and compare the list and content of legal documents of the entire project.
- Check the legality of economic contracts between the Investor and contractors and other related units.
- Check compliance with State regulations on construction investment order and procedures.
- Auditor's recommendations on the retention of documents, records and accounting books.
Check the investment capital for the entire project, the amount of investment capital allocated over the years, the total investment capital implemented for the project, the investment capital implemented over the years:
- Check capital sources on the basis of data compiled from annual financial reports, check the presentation and classification of investment capital sources according to types: budget capital, basic depreciation capital, credit capital, capital Self-replenishing each year and the entire project.
- Check the presentation and classification of capital sources according to components: construction, equipment and other basic construction, compare the implemented investment capital structure with the capital structure recorded in the total estimate and total investment .
- Check the capital allocation situation over the years, compare with data from the capital allocation and lending agency.
- Analyze and compare the implemented investment capital structure with the approved total estimate
Check the final settlement value of construction and installation work items and the entire project:
- Check the total cost of construction and installation based on data compiled from the annual financial report
- Compare construction costs of project items with the total approved estimate, compared with the winning estimate, determine and evaluate the causes of increase or decrease.
- Check the presentation and recording of construction costs to ensure that incurred construction costs are fully recorded in books and annual financial reports.
- Check the detailed settlement of construction items to ensure that the costs incurred are reasonable, including: checking the application of unit prices and policies in construction over each period, checking the volume Comparing settlement with actual construction, winning bid documents, design drawings, as-built drawings, and acceptance records. Check whether the application of norms and unit prices is consistent with the State's general regulations and specific regulations for the project.
Check the final value of materials and equipment:
- Check total equipment costs based on data compiled from annual financial reports.
- Compare the list and types of equipment prices with the total approved estimate, identify and evaluate the causes of increase or decrease.
- Check details of equipment costs, compare and contrast with equipment contracts, invoices, documents, delivery records, and installation settlement to ensure that equipment costs incurred are reasonable.
- Check the reasonableness of the costs of receiving, transporting, preserving and maintaining, foreign trade surcharges, warehousing, etc.
Check the settlement value of other costs and the allocation of these costs to project items
- Check the summary of other costs based on data compiled from the annual financial report, compare with ledgers and accounting documents.
- Compare the value of each other type of cost implemented with the total approved estimate and the current regime on other cost management in construction investment, determine the causes of increase or decrease.
- Check the reasonableness, validity, and legality of compensation costs for crops, assets, and relocation and resettlement within the scope of the project.
- Check the reasonableness, validity and legality of project management costs, expert costs, unit price costs, appraisal costs, inspection costs, insurance...
- Check the reasonableness, validity, and legality of survey, design, construction supervision consulting costs and other types of consulting.
- Check and determine outstanding debts, supplies and equipment.
- Check and determine the value of assets handed over to the user;
- Check the reasonableness, validity and legality of bank loan interest expenses
- Check the reasonableness and legality of other costs such as groundbreaking, worker training, etc.
Check the final settlement report and project settlement documents:
- Review and compare all construction values, value of materials and equipment put into use, total investment capital according to capital structure including: Construction, Equipment, Other basic construction.
- Together with the Investor, compare the entire debt situation at the time of settlement, outstanding supplies and equipment. Recommendations for handling debts as well as outstanding supplies and equipment
- Determine costs not included in the value of the project as a basis for recording capital reduction for the project.
- Check the preparation of the Finalization Report according to the instructions in Circular No. 19/2011/TT-BTC dated February 14, 2011 of the Ministry of Finance..
III. QUALITY ASSURANCE MEASURES FOR AUDIT SERVICES
The audit of the Project's construction investment capital settlement report is carried out in accordance with Auditing Standard No. 1000 issued together with Decision No. 03/2005/QD-BTC dated January 18, 2005 of the Ministry of Finance. Regarding the audit of the completed investment capital settlement report
And the audit process of the Capital Settlement Report has been approved by the Company. This process has been applied to large projects of groups A, B... that the Company has audited with guaranteed quality in accordance with current regulations.
To know more about Basic construction audit as well as to know basic construction audit service fees
Please contact AACS Company