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Page 1 CONTRACT ADMINISTRATION BACKGROUND: The city will expend $ _____ million on capital items in 19XX. Non-enterprise fund projects, administered by the Department of Public Works, will be $ _____ million. The enterprise funds of Water and Sewer expect to spend $_____ million for the same period. All major capital construction is done by private contractors payments to contractors and contract compliance. This audit will not cover those capital projects funded by the federal government. In addition, we will limit our analysis of the job cost accounting system to proper classification of work orders. SCOPE: The audit period is from _____ to _____ for test work and as of the last day of the field work for internal control. PLANNING: 1. Prepare and send an entrance letter to the Director of Finance and to the Public Works Director. 2. Prepare a planning program and budget for the preliminary survey work. 3. Discuss the audit area with your team leader and obtain approval on the planning stage of the audit. 4. Schedule and hold an entrance conference with the Public Works Director in order to discuss the upcoming audit. Obtain the name of the department contact person. Also secure a work place from which to conduct the field portion of the audit. 5. Review relevant background material on the subject matter such as the city budget, external and internal audit files and past reports. Obtain any management reports prepared by the Department of Public Works. 6. Conduct the preliminary survey and prepare a flowchart showing the major paper flow and current procedures. 7. Confirm your understanding of the work order system by walking through a few sample transactions. Revise documentation, if necessary. 8.
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This note was uploaded on 05/16/2011 for the course AUDITING 201 taught by Professor Unknown during the Spring '11 term at Symbiosis International University.

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