Fair Lawn, NJ (PRWEB) July 13, 2012
Summer months are heating up and so is the risk on construction projects. Construction trends are beginning to rise so more companies will be doing construction, maybe for the first time. Now is the time for organizations to assess where current projects stand and if organizational staffs are ready for new or more projects. Part of this readiness is audit readiness.
Auspicium is reminding customers that considering capital projects means considering the risk of capital projects. This is the time of year where project managers will start to pitch the next big construction project and hope to secure capital investments. This is the time audit should be assuring they are ready to lend a hand, including increasing their knowledge of construction and construction audit.
Audit management need to assess if the auditors are ready. They must consider and understand how and why projects were chosen and approved and whether all projects were considered fairly? Another factor is understanding the overall corporate strategies, and whether projects proposed are consistent with these strategies?
Risk is constantly evolving. Auspicium has developed a tool, Construction Audit Risk Evaluation (CARE) ™ that captures key common risks and controls needed for a construction project. This is important to help ramp up a project, shortening the planning process, allowing the audit to start quickly. Organizations should be ready to acknowledge, understand and accept (or mitigate) the risks as they or before they take on that big project.
Summer months are heating up, this can add to the risks. For those projects already under way, the push is on to get projects completed before winter weather sets in or so that crucial timelines can be made. Project managers need to be ensuring that deadlines are monitored and effective contingencies are in place to manage any projects that are falling behind.
Auspicium reminds managers that hot summer days may mean shorter work hours, compounded with reduced staff due to vacation schedules. With that in mind, are contingencies still realistic?
Many auditors wait to get involved until construction is well under way, as they fear they can not offer value in the planning stage. This is just not true. Studies show that the sooner the auditor gets involved the better to protect the project and the organization.
As projects come close to an end, and costs are ramping up, sometimes audit will be called in to help control cost overruns. The problem with calling in audit once there is a problem is it may be too late. Audit departments then need to determine if audit has the resources and knowledge to audit the project. Early involvement could have prevented project problems in the first place. Training of key players: auditors, project managers and even accounts payable before a project starts proves beneficial, as these key players are then trained to find the risk and apply fixes.
Auspicium is the specialist in construction audit and construction audit training. Our staff are project management professionals, certified internal auditors and certified construction auditors. If your audit staff needs help auditing that big construction project or understanding the risks, please contact Auspicium or check out http://www.auspicium.com.