Construction Audit Primer and Basics
-
Speaker : DENISE CICCHELLA
-
When : Wednesday, May 21, 2025
-
Time : 01 : 00 PM EST
-
Add To Calendar
Refer a Friend
Denise Cicchella is a Certified Internal Auditor, Certified Fraud Examiner and Certified Construction Auditor. She has over 26 years experience in audit and fraud investigation. As a construction auditor she is normally accustomed to auditing travel and expense from a vendor standpoint but is also accustomed to auditing travel and expense from within the organization. She is a recognized expert and speaker on auditing, fraud, audit committee and construction audit.
Denise is the author of three books on construction audit (Construction Audit Guide -Monitoring, Controlling and Auditing, Essentials of Construction Management and Construction Audit Building a Solid Foundation) and acted as a co-author and technical editor for Auditing for Corporates.
A construction audit is a systematic examination of financial records, processes, and controls related to construction projects. It is conducted to ensure that the project is being executed efficiently, effectively, and in compliance with relevant regulations and contractual agreements. Construction audits are typically performed by internal auditors within a company or by external audit firms hired specifically for this purpose.
Construction projects are complex undertakings involving significant financial investments, multiple stakeholders, and numerous moving parts. Due to the size and scope of these projects, there is a risk of cost overruns, delays, and quality issues. A construction audit helps mitigate these risks by providing independent verification and analysis of project-related activities.
The objectives of a construction audit can vary depending on the specific needs and priorities of the organization. However, common objectives include:
- Cost Control: One of the primary objectives of a construction audit is to ensure that costs are controlled and managed effectively throughout the project lifecycle. This includes verifying that expenses are reasonable and necessary, identifying cost-saving opportunities, and detecting instances of fraud or misappropriation of funds.
- Compliance: Construction projects are subject to various regulatory requirements, contractual obligations, and industry standards. A construction audit assesses the project's compliance with these requirements, ensuring that all relevant laws, regulations, and contractual provisions are being followed.
- Quality Assurance: Construction audits also focus on ensuring that the project meets quality standards and specifications. This involves evaluating the quality of materials and workmanship, assessing adherence to design plans and specifications, and identifying areas for improvement.
- Schedule Adherence: Timely completion of construction projects is essential to minimize disruptions, avoid costly delays, and meet stakeholder expectations. A construction audit evaluates the project's progress against the planned schedule, identifying any deviations and assessing the impact on project timelines.
- Risk Management: Construction projects are inherently risky, with various factors such as weather conditions, labor shortages, and supply chain disruptions potentially impacting project outcomes. A construction audit assesses the project's risk exposure, identifies potential risks and vulnerabilities, and recommends risk mitigation strategies.
- Contractual Compliance: Construction projects typically involve multiple contracts with contractors, subcontractors, suppliers, and other parties. A construction audit reviews these contracts to ensure that all parties are fulfilling their contractual obligations and that contractual terms and conditions are being adhered to.
The construction audit process typically involves several key steps:
- Planning: This phase involves defining the scope and objectives of the audit, identifying key stakeholders, and developing an audit plan and timeline. The audit team also gathers relevant documentation and information about the project.
- Fieldwork: During this phase, auditors conduct on-site visits to inspect construction progress, review financial records and documents, interview project stakeholders, and assess compliance with relevant laws, regulations, and contractual agreements.
- Analysis: Auditors analyze the information gathered during the fieldwork phase to identify any discrepancies, inefficiencies, or areas of non-compliance. This may involve comparing actual costs and progress against budgeted estimates and project plans, conducting financial analysis, and assessing the effectiveness of internal controls.
- Reporting: The findings of the audit are documented in a formal report, which typically includes an executive summary, detailed findings and observations, recommendations for improvement, and management responses. The report is shared with key stakeholders, including project sponsors, management, and other relevant parties.
- Follow-up: After the audit report is issued, auditors may follow up with management to ensure that corrective actions are implemented in a timely manner and that any identified issues are addressed appropriately. Follow-up activities may include additional testing, monitoring, and periodic reassessment.
In summary, a construction audit is a critical tool for ensuring the effective management and oversight of construction projects. By providing independent verification and analysis, construction audits help organizations identify risks, control costs, ensure compliance, and ultimately achieve successful project outcomes.
Areas Covered
- To discuss the phases of the construction life cycle.
- To analyze what each project needs and who each of the players is.
- To discuss the flow of the construction payment cycle.
- To discuss project and vendor risk.
- To analyze audit planning and risk assessment.
Who Should Attend
Internal auditors, construction auditors, project managers.
Why Should You Attend
Attending "Construction Audit Basics and Primer" offers several benefits to students:
- Foundational Knowledge: For students interested in project management, construction management, auditing, or related fields, this webinar provides fundamental knowledge about construction audits. Understanding the basics is crucial for building a strong understanding of more complex concepts in the future.
- Career Advancement: Learning about construction audits can enhance a student's skill set and make them more attractive to potential employers. For internal auditors, learning about construction audit can give you a more well rounded knowledge base that can be used to enhance audit skills. It demonstrates a proactive approach to professional development and a willingness to learn about different aspects of the construction industry.
- Practical Insights: The webinar covers practical tips, tools, and techniques used in construction audits. These insights can be invaluable for students seeking real-world applications of their theoretical knowledge.
- Stay Updated: The construction industry is constantly evolving, with new regulations, technologies, and best practices emerging regularly. Attending this webinar allows students to stay updated on the latest trends and developments in construction auditing.
- Preparation for Certification Exams: Some students may be interested in pursuing certifications related to construction auditing, such as the Certified Construction Auditor (CCA) credential. This webinar can serve as a solid foundation for preparing for such exams.
Overall, attending a webinar on construction audit basics and primer can be a valuable investment of time for students looking to deepen their understanding of the construction industry and enhance their career prospects.
Topic Background
Construction Audit is becoming more and more prevalent, and organizations are appreciating its importance. Learning the basics of construction auditing can provide valuable knowledge and skills for professionals and students in the construction industry, offering insights into financial management, risk mitigation, compliance, and overall project oversight.
-
$160.00
-
