Contracts Audit – Guidance Notes
INDEX
PAGE NO.
Introduction
03
Scope of work
03
Performance of Audit work:
• Planning the Audit
04
• Examining and Evaluating Information
04
• Communicating Results
04
• Following Up
04
Audit Objectives
05
Methods to be used in attaining these Objectives
06
Contract Administration
06
Qualities and Attributes of a Contract Auditor
06
Stages of Contract Auditing
06
Pre – Contract Investigations:
• The system for and effectiveness of project appraisal within
the organization.
07
• The systems for admitting contractors to the approved list
and for reviewing their performance and current viability.
09
• The methods for the selection of contractors invited
to tender.
09
• The system for regulating the tendering procedures and
the letting of contracts.
10
• The system for reviewing the suitability of Conditions of
Contract and Tender Documents.
12
• Insurance and Bonding procedures.
13
Currency of Contract Investigations
• The system and documentation for providing Financial
Information to enable costs to be adequately controlled
including reporting procedures.
14
1
• The system of on-site control regulating valuations of
work for interim payments.
16
• The system for the examination and control of Price
Fluctuations.
16
• The system for the control and issue of variations.
17
• The system for the receipt and evaluation of
Contractual claims.
18
Final Contract Investigations
• The system for ensuring that when the final account is
produced, it is complete and accurate.
20
• The system to ensure that liquidated damages have been
recovered where appropriate.
20
Post Completion Investigations
21
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