Audit of investment projects allows you to control investments already at the planning stage. With a correct approach to the issue, you can foresee possible errors and take measures to avoid them. The technological and price audit of investment projects is a tool that evaluates a planned plan even before its implementation.
Important Features
If an audit is planned, pay attention to:
- Alternative projects in which you can invest. Compare them with the selected one and analyze what are the strengths and weaknesses of each option. Based on the data received, you can make the final decision.
- Management decisions, after summing up a rigid base for them that cannot be disputed. It is important that key indicators relevant to any enterprise are involved, that is, remuneration of labor, economic efficiency, and the social component.
- An audit of investment and construction projects, as well as in other areas, necessarily implies a reasonable approach to identifying risks that accompany the realization of an idea.
- Correction of the revenue component and spending in such a way that it was possible to circumvent risky situations.
Technological and price audit of investment projects allows you to get such a report, based on which the entrepreneur can make the right decision in the field of organization management. It is on the basis of a detailed analysis of the situation that we can determine whether a particular project is attractive for investment.
The most relevant
A public technological and price audit of investment projects is most relevant in the field of construction. In this area, over the past few years, there has been an increase in investment by the state, which has increased the requirements for control methods. Recent changes in the economy and business practices have shown that it is necessary to work on new methods for assessing and regulating the effectiveness of investing money in certain ideas.
In response to this need, enterprising people were quickly able to create such audit techniques that allowed them to systematically study investment objects and evaluate them comprehensively while taking into account all significant factors. Nowadays, those results that show independent expertise are most highly valued. In this case, the following components are evaluated:
- economic;
- technological;
- technical.
Although at first the technological price audit of large investment projects was developed as the most effective option in the field of construction, over time it has become relevant for other areas in which it is profitable to invest money.
Assessment specifics
The audit program of investment projects assumes that independent experts from various fields work on the assessment and consider all stages of the object’s life cycle. In order to get the correct result, it is most reasonable to turn to some independent company with a good rating and a high level of trust. This will help optimize solutions in the context of the technologies used and the project features, as well as increase the effectiveness of the use of cash investments.
High-quality and accurate price audit of investment projects allows you to underestimate the price of the project while reducing the duration of its implementation.With the right approach and taking into account all the significant factors, the workflow will be environmentally friendly and efficient in terms of energy consumption, if it comes to construction.
Control and support
The state did not disregard all the opportunities that a public audit of investment projects provides. In recent years, it provides certain preferences to those who are willing to pay attention to such opportunities. A plan was introduced for the period from 2013 to 2018, aimed at ensuring that large projects that are profitable to invest in are audited.
Goals and opportunities
Carrying out a technological audit of the investment project makes it possible to evaluate how correctly the solutions were chosen:
- constructive;
- technological.
It is also imperative that the applicable methodologies and technologies meet the level of development. If we are talking about a construction site, experts pay attention to the applied technical means and building materials, analyze what technologies are used in the construction of the facility, whether innovative developments are taken into account, or whether advanced techniques are implemented. They check whether the construction site meets the standards and production requirements. In total, this will allow us to draw conclusions about how efficiently the budget money invested in the project is spent. In addition, the audit of investment projects makes it possible to increase the competitiveness of a particular object.
Price Audit as a Way to Success
Why is an audit of an investment project conducted? An example is this: before the assessment of the object, the value of the object was large enough, which caused a lot of controversy among potential investors who considered that these were unjustified, overstated figures. This, in turn, limited the flow of funds and suspended the implementation of the idea. Carrying out audit activities allows you to identify shortcomings, miscalculations in determining the cost, so that the price tag drops significantly. Since the result of the analysis is necessarily documented, confirmed by highly qualified experts, this allows you to trust the object. This means that more investors will be able to take the opportunity and invest in it, and the influx of finance will accelerate the implementation of the idea into reality.
Price audit today is the most effective method to improve the return on investment. This is equally true for large federal facilities, and for individual construction sites.
Subject of audit
Audit of investment projects is carried out in the context of the following aspects:
- Assessment of decision making in favor of a particular method (this applies to the design features of the project and its technologies, engineering and technical aspects, and architectural models). At the same time, the cost of operating the facility during the full life cycle will also be taken into account in the future. Be sure to analyze the conformity of the applied capabilities and the technical, technological level of development of society.
- It is estimated how successful the choice in favor of a technological solution was. At the same time, compliance with the requirements for work, services, and products is analyzed. Experts pay attention to the availability of alternative methods of product development, allowing to achieve a better result or similar.
When an audit of investment projects is carried out, analysts give reasons in favor of some technological solution. In this case, it is analyzed whether new goods and products are created in the course of the work process or whether old ones are modernized, or whether there is neither one nor the other. Necessarily taken into account separately services and civil work. Expert assessment is given only taking into account the specifics of the technological process and its compliance with the level of development of our society.
The subtleties of audit
When conducting a project assessment, which allows us to draw conclusions about the reasonableness of investing in an object, it is necessary to analyze the following subtle points:
- The choice in favor of the equipment used (it is customary to resort to an enlarged nomenclature). Evaluate whether the result of the work is expected by society at the current technical level of development.
- Dates, preparatory stages and the period of the project as a whole. Analysts draw conclusions about the optimality of the time frame or the need for their adjustment.
- Risks associated with the implementation of the project. Experts pay attention to the technological aspects of possible dangerous situations, economic and temporary.
During the audit of the project, they pay attention to the maximum selling price. It is necessary to include expenses calculated in accordance with aggregated indicators. Similar projects being built in the same country as well as abroad are taken into account. Comparative price analysis should be based on data obtained from different construction sites, where work is carried out under conditions close to those characteristic of the analyzed.
The result of the audit is an expert opinion, confirmed by the signatures of all those involved in the analysis. It is compiled in a form approved at the state level, and allows a potential investor to make a final decision in favor of the project or abandon it.
Audit: when do we spend?
Undoubtedly, the tasks of evaluating a certain project attractive from the point of view of investments are a responsible and complex process requiring investment of time and money. This means that it is far from always necessary. Contacting a private or state-owned company for expertise should be made if it is necessary to confirm that a particular project will really be effective as it is implemented. The assessment also allows you to find alternative options, thanks to which you can protect your interests.
An audit is indispensable if you need to make sure that exactly those technologies that are stated in the project documentation are used in the workflow. Evaluation allows you to clarify their modernity, efficiency and effectiveness, taking into account the specifics of the economy and level of development. This is important: an audit allows you to draw conclusions regarding the technologies, materials and capabilities used at the time of the assessment. This does not mean that tomorrow its results will continue to be relevant, since there is a chance of a sudden discovery of fundamentally new approaches, techniques and methods for solving certain practical problems.
Correctness and relevance
At audit the estimated documentation is surely checked. This stage allows you to draw correct conclusions about the following aspects:
- the availability of sufficient justification for all planned expenses;
- conformity of equipment and materials;
- the adequacy of the project relative to market value.
Attention is paid to everyone without exception!
During the audit, experts check how correctly the finances allocated for the implementation of the object are used. If the contractor claims that it has reached some important level, performance indicators, then during the audit you can verify that this information is accurate and correct, true and trustworthy. At the same time, the indicators declared in the project documentation are analyzed and they are reconciled with the real situation.
In some cases, assessment activities allow us to conclude how justified certain decisions applied during construction are justified. In this case, the results of the analysis will contain conclusions about the value of the object, taking into account the technical parameters.
Are you ordering?
Which legal entities most often use the services of experts? Practice shows that this kind of service is relevant for enterprises with state money, as well as those companies in which the state takes part.
What kind of response the customer will receive directly depends on at what stage of the project it was decided to turn to external experts for the purpose of audit. In some cases, you should rely on recommendations that will help optimize the workflow and make it more profitable. Here, experts offer technological and technical options for solving complex situations that can help complete the construction in the shortest possible time while minimizing costs. If an audit is requested at the stage when the documentation for the facility is already being prepared, then the experts will tell you how to pass the state examination. Specialists working on the project will learn from independent experts what shortcomings have been made, will receive recommendations to improve the quality of the project.
To summarize
So, the audit of an investment project is a process that provides an opportunity to obtain information about how the project is profitable, promising and optimized. An audit allows us to understand whether construction is necessary in principle, as well as to identify alternative methods of creating a similar object at a lower cost. Analysts study the applied technologies and materials and make a conclusion about their adequacy, modernity, reasonable cost.
The main benefit of auditing is independence. This distinguishes him from the background of state expertise, coupled with a conflict of interest, since there those people who carried them out give an assessment of the measures taken. But in the case of an audit, third-party specialists are involved who are able to correctly evaluate the implemented and analyze what and how can be improved.