Auditing

• Audits of financial cost of construction contracts with architects, engineers, construction managers, general contractors, and subcontractors.
• Audits in accordance with the International Standards for the Professional Practice of Internal Auditing as published by the Institute of Internal Auditors (IIA).
• Quality assessments of the construction contracts internal audit fuction.
• Specialist augmentation of internal audit staffs where breadth and depth of construction experience may be weak.
• Fraud risk assessments and prevention audits of construction activities.
• Verification of off-site stored materials.
• Construction contract pay applications/invoice reviews and approvals.
• Project change order reviews, negotiation and management.
• Pro-active contract audits at specified intervals (monthly, 25% complete, 75% complete, etc.)
• Project close-out audits.
• Post project/recovery audits.

Consulting

• Owner’s expert knowledge resource.  Protection of owner’s interests.
• External quality assessment of construction audit programs in accordance with IIA Practice Advisory 1312-1.
• Analysis and upgrading of owner contracts; esp. AIA based contracts.
• Independent ethics reviews (supports Sarbanes-Oxley attestations).
• Training owner’s internal auditors to audit construction contracts.
• Training owner’s project managers how to best perform financial administration of construction contracts.
• Consultations on Best Practices for construction contracting.
• Assessment of bids and the bid process.
• Dispute resolution services:
• Arbitration (Member of the American Arbitration Association and on its Panel of Arbitrators).
• Claims mitigation support.
• Expert witness testimony and support.

Sarbanes-Oxley Compliant Audits

DCA primarily serves as a company’s internal auditor for capital projects/construction contracts where the in-house internal audit staff does not have the experience and expertise.  It can also serve as an independent/outside auditor in assessing the capital project management processes and program.

DCA is qualified as required in the Institute of Internal Auditors’ (IIA) Practice Advisory 1210.A1-1:  Obtaining Services to Support or Complement the Internal Audit Activity.

As a part of its quality assessments of internal audit programs (See IIA Practice Advisory 1300), DCA looks at:

• Authorization of capital projects and construction contracts.
• Valuations of constructed assets on the corporate Balance Sheet.
• Segregation of non-capital maintenance and repairs from capital improvements.
• Promptness of closings (starting the depreciation process) of completed projects.
• Optimization of depreciation strategies/categories.
• Recognition of abandoned engineering and/or construction costs as period expenses.
• Capital expenditures and cash flow management and reporting.
• Fraud prevention programs.

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