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Query relating to Audit

roopa (Audit Eecutive) (43 Points)

27 November 2007

What are the areas of Importance for Internal Audit of Construction Firm?Let me know ......

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7 Replies

Narendra (Employment) (154 Points)
Replied 27 November 2007

For a constuction firm , interncal controls for following areas may be checked thourghly, Contract revenue Contract expenses Work in progress Site cash ect,,,,

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girish (article) (567 Points)
Replied 28 November 2007

Work certified and not certified....Amount carried to Profit and loss..

Prakash Popat (3134 Points)
Replied 29 November 2007

Evaluation and Control over systems to decide WIP,and Consumptions of Basic RM,such as steels,cement,Bricks.

CA Ghanshyam Baheti (chartered accountant) (587 Points)
Replied 26 December 2007

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

Mahesh B Chandorkar (Student) (40 Points)
Replied 28 December 2007

first thing you have to do, you have thoroughly check the & understand the Internal control system of construction company.

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(Guest)

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