AUDIT PROGRAM

FINAL ACCOUNT

1. AUDIT OBJECTIVES AND SCOPE

Audit Objectives:a. To ensure when the Final Account is produced, it is complete and accurate.
b. To ensure that the Final Account is prepared as soon as the Contractor has fulfilled his obligations under the Contract.
c. To ensure that the rules and procedures are complied in the preparation and issue of the Final Account.
Audit Scopes:a. The Final Account is prepared and Final Certificate issued accordingly.
b. The Final Account is supported by detailed documentation showing how the value is built up.
c. The rates and prices have been checked to the contract.
d. Remeasurement works are done and are supported by remeasurement records.
e. Variation Orders are finalized and supported by written authorization.
f.

Any retention monies or outstanding obligations under the contract are allowed for in determining any final amounts
payable.

g. The Final Certificate is signed by the authorized person under the Contract.
h. The administration of the Final Account and Final Certificate are distributed and statutory requirement complied.

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AUDIT PROGRAM
Key Control Reviewed/Audit Program
A

Certificate of Practical Completion

1.

Certificate of Practical Completion issued and attached.

Variation Order

1.

Provisional Sums are adjusted accordingly to the Contract.

2.

Provisional Items have been re-measured on completion.

3.

Variations are approved and valued in accordance with the contract

and SOP ( e.g. Limits of Authority)

Contract Sum

1.

Original Contract Sum to be stated in the Final Account.

2.

Final Sum to be correctly calculated from the original sum and the
V.O. sums.

Progress Payment

1.

Payment of material supplied has been settled.

2.

Any payments certified as due to nominated sub-contractors and

suppliers had been settled.

3.

Any payments in accordance with the clause on the clause on

determination by Employer or engagement of third party contractor
had been settled.

4.

Progress payment stated to tally with the respective progress payment

certificate approved.

5.

Any payments made on behalf of contractor to tally with the amounts

stated in relevant certificates/vouchers.

Extension of Time

1.

All extension of time/non-completion certificate approved by the

authorized officer.

LAD

1.

LAD to be calculated correctly.

Completeness of the Final Account

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Satisfactory

Remarks

1.

The Final Account is supported by detailed documentation showing

how the Final Account value is built up.

2.

A full arithmetical check has been carried out.

3.

All blanks to be filled.

Timeliness

1.

Review the timeliness to produce the Final Account. The submission

of the F/A by the Contractor, review by Consultant and the final
approval by the Consultant/ Management against what was specified
in the Terms and Conditions of the Contract.

2.

Timeliness to finalize the related documents in order to firm the F/A

such as VO, Payments to the Contract, Deductions and other
documents as specified.

3.

The Final Account Certificate must be signed by the said

person/party as specified in the Contract. Copies being distributed
accordingly.

4.

Prior to the issuance of the F/A, the report on the performance of the
Contractor to be filled and all records which is required of the final
costs of the Works made available.

Regulatory Requirement

1.

Submission of Statutory Declaration by the Contractor and / or

certificate from Ministry of Labour.

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No. Major Process

1

Control
Environment

Sub-Process

Objective

Risk

Governance and To assess the

structure
establishment of

Control

Audit Procedure

Obtain and review

the

standards of

Organizational /

conduct or the

Departmental

Standard Operating

structure of the

Procedures (SOPs)

area(s) under
review, and assess

In reference to the

the

general objectives:

appropriateness of

To enquire and

the structure in

understand the

providing effective

current processes in

oversight, and

place with regards

clear reporting

to Final Account

lines.

process
To ascertain the
various levels of
accountability, and
parties responsible
to keep track of,
and monitor the
Final Account status
until closed.

Assess whether the

delegation of roles
and responsibilities
have been properly
defined in a formal
Job Description
(JD). Enquire of
staff as to whether
they were formally
briefed of their
roles and
responsibilities,
and if they were
given a copy of
their JD.

Enquire on the
setting of relevant
Key Performance
Indicators (KPIs) to
assess the staff
performance (in
relation to Final
Account). Check to
ensure that the
KPIs are in line
with the roles and
responsibilities
assigned.

b. In line with the

scope of review,

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Work done and

observation

enquire on the
existence of
Standard
Operating
Procedures (SOPs)
if any, pertaining
to the Final
Account.This is to
also tracking,
monitoring and
maintenance of
relevant
documentation
pertaining to the
deposits made/
claimed).
Check to ensure that
these SOPs and
procedures if any, have
been communicated
and made known to the
relevant parties /
personnel
Control Activities

To understand

Aged Final Account

the current

that have yet to

Procurement

1.

process related close.

Department
Based on

to deposits

discussions with

management

the Property

(i.e. assigned

procurement

responsibilities,

department,

clear duty and

enquire on the

accountability)

current process in
place with regards

In reference to

to Final Account

the general
objectives:

2.

From the
walkthrough

To assess the
effectiveness of the
deposits
payments / claims
tracking, and
monitoring by the
Finance
Department at
Property Head
Office, as well as
by the various
Township
Management
/related
department;

performed, check
against the
established SOPs in
place if any, and
note gaps if any
between the
current process in
place, and the
SOPs.

3.

Enquire on the use

of any system to
record and keep

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track of all Final

Account, if any.
Understand the
current process in
place by the
Procurement
Department to
keep track of Final
Account.

4.

Enquire on
attempts made by
the Procurement
Department to
follow up with the
respective
Townships.

Township
1. Perform a
walkthrough of the
current process in
place at the
selected Townships
on the process of
Final Account
(Townships to
include matured
and new)

2.

Enquire
of the Township
personnel,
mechanism put in
place by the
Property
Procurement
Department if any,
on the tracking and
monitoring of final
account that have
been done at the
Townships.

3.

Based
on the Townships
sampled and
walkthroughs
performed, assess
whether adequate

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levels of
accountabilities
have been
established in
regards to
including ensuring
that adequate
documentations
are maintained to
support the claim
process

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