Audit of Completed Project Final Settlement Reports

An audit of the final settlement report of a completed project is an essential step that gives the project owner and the investment decision-maker a reliable basis for finalising and approving the project settlement. For many state-funded projects, it is also a statutory requirement.

With a team that combines auditors with civil, transport and construction economics engineers, HNAPA helps management identify shortcomings in project management and assists in completing settlement documentation and procedures in accordance with current regulations.

Scope of Services

• Audits to determine construction and equipment costs for each work item.
• Audits of total project and works costs.
• Audits of completed project final settlement reports.
• Settlement advisory for ongoing and completed projects.

Audit Coverage

1. Audit of the project’s legal documentation.
2. Audit of the project’s sources of investment funding.
3. Audit of investment costs: reconciling the settled quantities of each bid package against approved designs and cost estimates, acceptance records and as-built drawings; checking the application of norms and unit prices.
4. Audit of investment costs not capitalised into asset value.
5. Audit of the value of assets created through the investment.
6. Audit of outstanding receivables and payables, and of surplus materials and equipment.
7. Review of compliance with the conclusions of inspection and audit bodies, including the State Audit Office of Vietnam.
8. Assessment of compliance with regulations on investment, construction and bidding management; recommendations on the settlement value.

Basis of Engagement

Our services are performed in accordance with Vietnamese Standard on Auditing No. 1000 – Audit of Completed Project Final Settlement Reports, and current regulations on construction investment management, bidding, and project management, payment and settlement. HNAPA covers all types of works (civil, industrial, transport, technical infrastructure, power, agriculture, information technology) and all funding sources (state budget, public investment capital, state capital outside public investment, ODA and other sources).

Engagement Steps

1. Receiving and preliminarily assessing the documentation, preparing the overall audit plan and requesting any additional documents (within 5 days).
2. Understanding the management environment, internal control system and accounting system; inspecting the project site; assessing risks.
3. Detailed audit of legal documentation, investment costs, funding sources, receivables and payables, the value of assets handed over and other costs.
4. Summarising results and issuing the first draft audit report.
5. Meeting with the parties concerned to agree the figures and issuing the second draft.
6. Internal review, issuing the final audit report, and formal acceptance and closure of the contract.