ABSTRACT
Financial audits are an institution which needs to be extended more regularly to large capital projects including, particularly, major construction programs. The typical project audit should be conducted in three sequential stages: near the end of planning for design or construction, during the design or construction period and following the completion of design or construction. Each stage will require a different mix of audit personnel, substantially different amounts of effort, will focus on different objectives, and result in different audit products. The stage 1 audit focuses on whether appropriate approaches, systems, and procedures have been developed for the maintenance of acceptable levels of financial management during stage 2. The stage 3 audit report would be prepared primarily for the project sponsor. The full project audit may be omitted from project planning due to concern for audit costs or a lack of awareness of its contribution to rigorous project management and project performance.
