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Contract Audit and Analysis

   

Added on  2020-04-15

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Running head: COST ANALYSIS AND NEGOTIATION TECHNIQUESCost Analysis and Negotiation TechniquesStudent’s Name:University Name:Author Note
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1COST ANALYSIS AND NEGOTIATION TECHNIQUESTable of ContentsIntroduction................................................................................................................................2Contract audit and its purpose....................................................................................................2Usefulness of the contract audits................................................................................................3Conclusion..................................................................................................................................3References..................................................................................................................................5
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2COST ANALYSIS AND NEGOTIATION TECHNIQUESIntroductionAudit is an essential step in the financial proceedings of any organization. This meansthat audit of the financial statements and other financial operations of business is a mandatorystep undertaken in every organization. Contract audit refers to the audit of the long-termcontracts or the projects planned to be complete within two or more accounting periods. Theconstruction and maintenance contracts are the mostly audited contracts.Contract audit and its purposeContract audit essentially refers to the process of verification and evaluation of thecontrols imposed by the contractor or the sub contractor on the policies and systems of thecontract by inspection of the accounting statements. The purpose of contract audit isprimarily to obtain audit recommendation or advice by the contracting officer. The advice orrecommendation that justifies the purpose of contract audit revolves around advice orsuggestion in regards to the amount paid for proprietary. It also is concerned with the amountthat the GSA has to pay to a contractor particularly when such amounts depend on time orcost determination or on variable features in relation to the results of the operations of thecontractor. Another purpose of the contract audit is monitoring that the contactor hasimplemented enough measures in order to protect the Government property under its control.The compliance of the contractor with the obligations of the contract is another purpose ofthe contractual audit. A contract auditor is also responsible for imposing internal controls forvariable or flexible features of the contracts (Aguado-Romero, López-Hernández & Vera-Ríos, 2014). In order to perform a successful audit of the contracts the auditor at first shoulddetermine the appropriate scope and parameters of the auditing procedure undertaken for
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