The chief purpose of construction audit program is to evaluate the actual control of the head office over the built up of a project, determine how far the terms of the contract has been carried out, verify the payments made for the construction, quantify and identify the overcharges to the project and also determine that the property and assets have been componentized and classified properly. The following procedures are followed for the program.

In the beginning it compares the strategies and also regulations of the undertaking and then determines whether approval from the certified office has been acquired. Some sort of substantiation with the number of employees for that work and whether they have the proper facilities for the work is also performed.

A check is also carried out to review the correctness and timely submission of the monthly reconciliation reports of the earlier years and also determine if the reconciliation reports are correct and agrees with the cash that is available in the account. All the bank statements and balances are also verified.

It is additionally utilized to decide if the particular checks were released correctly along with the prior permission of the certified authority. Furthermore, it decides that each of the payments are actually supported with proper bills or approved documents. The amount of the payment tallies with the bill and timely payment had been made is likewise validated.

It should also verify that payments made to the contractors by selecting a sample of payment vouchers and then verify that the vouchers have been approved by the concerned authorities before payment.

It should be verified by the construction audit program that the bid selected is the lowest and in case a general contractor was hired, verification should be made to determine if the contractor has got 3 bids at the minimum from other subcontractors. The subcontractors should also be given the go ahead by the concerned department.

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