Accounting audit of a construction company

Accounting audit of a construction company

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We were contacted by a director of a construction company who requested to conduct an audit of the enterprise to obtain information about the accounting statements, as well as to assess the work of the current outsourcing accountant.

During the audit, we identified:

lack of a strong organisational structure of the company, lack of regulatory documentation, lack of job descriptions
lack of a document management system (the main forms of internal reporting, production forms and regulations with deadlines for preparation and delivery)
lack of a site-by-site cost allocation system in bookkeeping
systemic errors in accounting and vulnerability of the bookkeeping system
lack of a cost controlling system, actual implementation, deviations of economic indicators, etc.
lack of a company development plan
lack of a site-by-site cost planning system

lack of a strong organisational structure of the company, lack of regulatory documentation, lack of job descriptions
lack of a document management system (the main forms of internal reporting, production forms and regulations with deadlines for preparation and delivery)
lack of a site-by-site cost allocation system in bookkeeping
systemic errors in accounting and vulnerability of the bookkeeping system
lack of a cost controlling system, actual implementation, deviations of economic indicators, etc.
lack of a company development plan
lack of a site-by-site cost planning system

For the head and owner of the company to obtain reliable and timely information, as well as to improve the efficiency of the enterprise, our specialists gave the following recommendations:

carry out measures to formalise and regulate processes in the company (according to the developed organisational structure)
optimise and regulate the work of departments, determine the functionality and prepare job descriptions and regulations
establish effective interaction between the departments of the company under the implementation of economic activities
implement a system of management accounting and budgeting:
- plans and production reports
- performance standards system
- payment calendar system (with coordination of payment requests and price and volumes control indicating sites and departments)
- basic management forms with details by sites and departments
develop and implement systems for cost standardisation and control
build an accounting system in the context of site-by-site and item-by-item accounting of income and expenses on the basis of any integrated software

carry out measures to formalise and regulate processes in the company (according to the developed organisational structure)
optimise and regulate the work of departments, determine the functionality and prepare job descriptions and regulations
establish effective interaction between the departments of the company under the implementation of economic activities
implement a system of management accounting and budgeting:
- plans and production reports
- performance standards system
- payment calendar system (with coordination of payment requests and price and volumes control indicating sites and departments)
- basic management forms with details by sites and departments
develop and implement systems for cost standardisation and control
build an accounting system in the context of site-by-site and item-by-item accounting of income and expenses on the basis of any integrated software

В результате проведенной аудиторской проверки предприятия руководству была предоставлена объективная информация и практические рекомендации, которые позволилили избежать серьезных проблем и издержек в будущем.

As a result of the audit of the enterprise, the management was provided with unbiased information and practical recommendations that later allowed them to avoid serious problems and expenses.