Project Audit Standards and Best Practices

Audit of Projects

Objectives

• Verify if the qualitative and quantitative objectives established for the project are achieved.
• Check if investments and expenditures are closely linked to the purposes and objectives of the project.
• Determine if supporting documentation is sufficient, valid, and competent.
• Check if terms are met.
• Check if changes, if any, have complied with the required authorizations.
• Verify project reception under the representative.

Procedures

1. Project requires a duly endorsed copy with the client's signature.
2. All documents required to endorse the formulation of the project.
3. Examine the contract signed to implement the project (subject to work performed, amounts, terms, special conditions, warranties, etc.).
4. Examine budget implementation to check that investment and expenditure items apply to the established and approved budget.
5. Require progress reports according to work completed and the Gantt chart compared to the original project and contracts.
6. Examine remittances or money deposits, accounts for reception, and turns as referred to destinations by contributors.
7. Examine costs and investments that have relevant documentary support (contributions, reception notes, invoices, contracts, authorizations, and taxes paid or accrued).
8. Check payments made for investments and expenses, whether in cash, check, or other documents.
9. Conduct a physical inspection of investments to verify they correspond to those required in the draft.
10. Verify technical or quality inspections, as applicable.
11. Examine warranties supporting the implementation of the project, such as receipt warranties, guarantees, or insurance policies, and their validity.
12. In the event of changes to the original project, check that these have been approved by higher authorities.
13. Verify compliance with applicable laws regarding tax status, labor, municipal, and environmental regulations.
14. Determine if the project meets the conditions for use and check the dates it will be available for functioning.
15. Verify project reception upon completion in accordance with conditions of use by work inspectors or other appropriate bodies established by the principal user and organizations contributing to the project financing.

Draft Audit Report

• Introduction
• Methodology and Scope
• Audit Results
• Conclusions