How to do audit of construction company?
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1. Analyze the company’s financial documents: Review the company’s income statements, balance sheets and cash flow statements to identify any discrepancies or inconsistencies.
2. Verify compliance with applicable laws and regulations: Make sure that the company is adhering to all construction laws and building codes in the area.
3. Check for any notable accounting errors: Look for any errors in the accounting books that could affect the accuracy of the financial statements.
4. Investigate internal controls: Examine the internal controls and procedures in place to ensure proper oversight of the company’s operations.
5. Evaluate the company’s management: Assess the appropriateness of the company’s management and operational practices.
6. Test financial records for accuracy: Perform tests on the financial records and documents to ensure the accuracy of the financial statement information.
7. Review all contracts: Ensure that the construction contracts are compliant and in line with the company’s mission and goals.
8. Examine the vendor relationships: assess the quality and scope of the company’s vendor relationships.
9. Analyze inventory and asset management: Verify that all inventory and assets are appropriately managed, accounted for, and stored.
10. Inspect health and safety measures: Observe and evaluate the company’s health and safety protocols.