Audit Methodology

Why a visible method matters

Cost audits fail quietly when teams disagree on what “done” means. Our methodology is the shared map: what we test, what we leave to quantity surveyors or lawyers, and when you will see a draft.

Stage 1 — Planning

We confirm the audit objective (board assurance, lender condition, year-end verification, or pre-settlement review), materiality thresholds, and the document universe. A planning memo lists populations: contracts, payment certificates, variation orders, and journal classes.

Stage 2 — Walkthrough

A short walkthrough with cost control and accounts payable clarifies how invoices enter the project ledger. We note control points that look strong on paper but weak in practice — for example, variation registers updated after payment rather than before.

Stage 3 — Testing

Testing mixes:

• Coverage checks on high-value certificates
• Sample testing on mid-value invoices using risk weighting
• Cut-off tests around reporting dates
• Allocation tests where costs move between projects or cost centres

Exceptions are logged with document IDs as we go, not reconstituted at the end.

Stage 4 — Draft findings

You receive a draft report and exception schedule. We hold a findings meeting so factual disputes can be cleared before the final version circulates more widely.

Stage 5 — Final report

The final report states scope, limitations, procedures performed, findings, and recommended actions. Annexes hold detailed schedules. We do not bury material exceptions in appendices alone.

Boundaries we keep

We do not certify the physical quantity of works. We do not opine on legal entitlement where the contract is silent. We do not rewrite your cost report for you. Those limits keep the audit independent and the fee honest.