top of page
Search

Construction contract audit

  • Writer: Thomas Tsang
    Thomas Tsang
  • Nov 15, 2020
  • 1 min read

The key area in audit of construction contract is the measurement of percentage of completion for recognition of Revenue over time. The company must prepare a so called construction project accounting. It must keep track all the costs incurred project by project, a budget, billing since commencement to the end of the project. Whether input or output method to measure the percentage of completion, the budget of the project is a key and involove judgemen.


To perform the audit is on project base, not invoice base. It is totally different from those manufacturing, trading, wholesale or retailing.

 
 
 

Recent Posts

See All
Audit thinking logic

What are we going to audit - revenue, trade receivables, unquoted equity investments, trade payables, etc What audit procedures (nature, timing) to be performed to ascertain each of the assertions Wha

 
 
 
Audit schedule provided by client in audit

Before we place reliance on audit schedule provided by client in an audit engagement, we are required to ensure the completeness and accuracy of the audit schedule. In order to address the issue, we n

 
 
 
Enterprise value

In business valuation, enterprise value is the value of the business. It includes any intangible assets not booked such as goodwill,...

 
 
 

Comments

bottom of page