In the U.S., the audit of contracts is considered part of internal audit, according to the Institute of Internal Auditors (IIA).
contract audits for DoD and provide accounting services and financial advisory services regarding contracts and subcontracts to all DoD components, recruiters and contract management are conducted by the agency to audit defense contracts (Defense Contract Audit Agency / DCAA).
These services monitor the negotiation, administration and settlement of contracts and subcontracts to ensure that taxpayer dollars are spent on contracts at fair and reasonable. See link:
http://www.dcaa.mil/
Audit is an independent, objective assurance and consulting activity designed to add value and improve an organization's operations.
To make an internal audit of contracts examined the following aspects: The
legal framework for contracts
* There is a list of the various sources of contract law
* Clarifying the definitions of legal sources
* It compares and contrasts the legislation of different jurisdictions
* It identifies the purpose of contracts and its role in reducing organizational risk
* significant exercise is to improve understanding of the performance of contracts Contract Components
* are verified
parties to a contract * is studied which is the supply and acceptance
* is verified or examination of tenders
* We review the numerous problems when it comes to recruitment capabilities. Identified actions
illegal contracts that leave no effect (causes of invalidity)
Activities Planned audit
contracts * Review of the effective audit planning
* Conducting a tour of the contract (geographically and administratively)
* Flowcharts contract process
* Verification of the valuation of the contract versus the planning process
* Running an enlightening exercise of planning steps
Sample Selection for Contract Audit
* Select a representative sample
* Choose the sampling strategies and techniques
* Identify risks in limiting the scope of the audit
* Test beyond the selected sample
Operations control and substantive testing
* Details of tests of controls
* Details of substantive tests
* Discussion with audited the major concerns when performing audit measures and actions to improve
* Implementation of a monitoring exercise and substantive evidence
Information High impact
* Assess the different results of the audit
* Prioritise audit results
* High impact reports to senior management or senior management
* Take Corrective Action
A certification called " Certified Internal Auditor (CIA ®) - Certified Internal Auditor - recognized in the United States for internal auditors and is the standard by which individuals demonstrate their professionalism in the field of internal auditing. See link:
http://www.theiia.org/guidance/standards-and-guidance/
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