Construction audit-an essential project control function

Abstract

Construction projects are known to overrun their budgets and schedules, poor quality of works, wastages, loss of value and experiences increase in financial frauds. Construction audit is a critical tool for the control and monitoring of frauds and other corrupt practices. The failure of construction organisations to recognise how critical auditing and its practices are in the management of construction projects have been blamed for the poor project performance outcome. The purpose of this study is to assess the benefits of construction audits to establish that it is a useful tool in controlling projects. Data were gathered from experts in consulting and contracting organizations using the well-structured questionnaire and purposive sampling technique in Port Harcourt, River State, Nigeria. With reliability of above 0.90, the collected data were analysed using frequency, percentage, mean score, and Mann-Whitney U test. It was found that the level of use of auditing is high and it is recognised as a significant project control tool. The main benefits of audit application in construction are; to reduce cost overrun, financial probity and accountability, aid in the recovery of cost to promote cost savings, to protect the clients from avoidable and unnecessary claims from contractors, and ensure that projects are delivered in accordance with the project contract provisions. Auditing should be encouraged in the delivery of private and public projects to ensure that value for money is achieved and losses reduced.

Full text

Journal of Engineering and Technology for Industrial Applications
Manaus, v.8 n.33, p. 26-32. Jan/Feb, 2022
DOI: https://doi.org/10.5935/jetia.v8i33.793
RESEARCH ARTICLE OPEN ACCESS
ISSN ONLINE: 2447-0228
Journal homepage: www.itegam-jetia.org
CONSTRUCTION AUDIT-AN ESSENTIAL PROJECT CONTROL FUNCTION
Reuben A. Okereke1, Usman Muhammed*2 and Emmanuel C. Eze3
1, 2 Department of Quantity Surveying, Imo State University, Owerri, Nigeria.
3 Quantity Surveying Department, Federal University of Technology, Owerri, Imo State, Nigeria.
1 http://orcid.org/0000-0003-1337-8179 , 2 http://orcid.org/0000-0002-0892-8634 , 3 http://orcid.org/0000-0001-7919-6322
Email: raphica2013@gmail.com, *qsusman@gmail.com, emmanuel.eze@futo.edu.ng
ARTICLE INFO
ABSTRACT
Article History
Received: January 06th, 2022
Accepted: February 21th, 2022
Published: February 28th, 2022
Construction projects are known to overrun their budgets and schedules, poor quality of
works, wastages, loss of value and experiences increase in financial frauds. Construction
audit is a critical tool for the control and monitoring of frauds and other corrupt practices.
The failure of construction organisations to recognise how critical auditing and its
practices are in the management of construction projects have been blamed for the poor
project performance outcome. The purpose of this study is to assess the benefits of
construction audits to establish that it is a useful tool in controlling projects. Data were
gathered from experts in consulting and contracting organizations using the well-
structured questionnaire and purposive sampling technique in Port Harcourt, River State,
Nigeria. With reliability of above 0.90, the collected data were analysed using frequency,
percentage,
mean score, and Mann-Whitney U test. It was found that the level of use
of auditing is high and it is recognised as a significant project control tool. The main
benefits of audit application in construction are; to reduce cost overrun, financial
probity and accountability, aid in the recovery of cost to promote cost savings, to
protect the clients from avoidable and unnecessary claims from contractors, and
ensure that projects are delivered in accordance with the project contract
provisions. Auditing should be encouraged in the delivery of private and public
projects to ensure that value for money is achieved and losses reduced.
Keywords:
Auditing,
Fraud and corruption,
Nigeria,
Project control,
Public construction project.
Copyright ©2022 by authors and Galileo Institute of Technology and Education of the Amazon (ITEGAM). This work is licensed
under the Creative Commons Attribution International License (CC BY 4.0).
I. INTRODUCTION
In both the developed and developing economies of the
world, the construction industry plays an appreciable and
recognisable role in stimulating the growth and development of
nations. The construction sector proved to be useful to the
national development and economic growth of countries, and the
most obvious impacts are in the provision of housing and
infrastructure, wealth creation, employment creation and
contribution to the income of nations [1, 2]. However,
construction projects are known to overrun their budgets and
schedules, poor quality of works, wastages, loss of value [1], and
experiences increase in financial frauds. This is attributed to the
multiple stakeholders involved [3], the number of companies and
huge monies involved in the delivery of construction projects [4].
The failure of construction organisations to recognise how
critical construction audits and their practices are in the
management of construction projects has been blamed for the
poor project performance outcome. According to [5] privately
and publicly financed building and engineering construction
projects in developed and developing nations are confronted by a
myriad of problems such as corruption, frauds, poor procurement
practices, poor quality, design deficiencies, lack of attainment of
value for investors/clients monies, cost and time overruns, and
project delivery issues. These ultimately result in the
dissatisfaction of the clients/investors and other critical
stakeholders in the construction sector. An audit is a planned and
documented activity of ascertaining via investigation, evaluation
of objective evidence, compliance with established processes and
standards, or applicable documents and the implementation

Okereke, Muhammed and Eze, ITEGAM-JETIA, Manaus, v.8 n.33, p. 26-32, Jan/Feb, 2022.
effectiveness [6, 4]. Construction audit involves the review of a
project to ensure it is performing as planned and contained in the
contract. It is therefore a crucial tool for keeping activities under
check and within the approved budget. The job of auditing must
be carried out without any interference. Construction auditing is
carried out in all newly approved construction contracts whether
is it publicly or privately owned and in renovation and expansion
projects [4]. Whether in new or refurbishment projects, auditing
should be not stopped after the final account but should extend to
the post-contract stage.
Construction contract administration often ends at the final
measurement and final account [7]. Cross-checking of work
executed is an important post-construction cost control system
that should not be neglected. A construction project audit is meant
to reconcile the value of work done with the resources committed
to it during the construction stage. According to [8] project audit
is carried out to make sure that the value of monies received
during the execution of a project is proportionate to the amount
spent. The ultimate aim was to ensure that the principles of
economy, efficiency and effectiveness are attained during the
construction phase. The audited project must show that the
contents of the contract documents reflect that the contract is not
inflated [9]. While construction auditing has gained ground in the
top developed nations of the world, developing countries in
Africa have not embraced this system appropriately. Nigeria is a
developing country where the performance of construction
managers is below satisfactory, especially in carrying out
construction audits (4, 8]. The role of auditing is however
adjudged to be cumbersome and confusing as a result of
inadequate knowledge and training on how to effectively carry
out construction auditing.
A review of construction management literature shows that
construction auditing is less explored by researchers and
academia. This lack of appreciation of construction audit and
practices as an essential aspect of project management
responsibilities as submitted by [5], has led to continuous use of
defective procurement, financial related fraud and corruption and
other social and contractual ills that lead to poor project
performance. This is despite how critical construction project
audit is in ensuring that clients achieve value for money and
controlling fraudulent and corrupt practices by contractors and
other construction experts. It is based on the foregoing that this
study entitled 'construction audit-an essential project control
function' is embarked upon. This study aim will be achieved
through an assessment of the benefits of construction audits with
a view to showing how useful it is in control of the project. This
study leveraged the experiences of the consultants and contractors
in the delivery of publicly funded construction projects to achieve
its aim. Public construction clients (both state and federal
governments), academia and construction experts will find this
study useful in areas of checking improper and fraudulent
practices across the entire supply chain management. This study
will also add to the scanty literature on construction audit,
especially in developing countries like Nigeria and others.
II. BENEFITS OF CONSTRUCTION AUDIT
Construction projects are usually time-consuming and
involve huge capital outlay and with most of the projects having 1
to 2% overcharges [10]. With multiple activities and stakeholders
and tasks being carried out simultaneously, it becomes a difficult
and tedious job to manage construction works effectively and
stair it out of trouble when it is derailing out of budget and plans.
Construction audit (CA) is a relevant and effective measure of
unearthing good and failed or bad project performance practices,
be it in new or refurbishment construction projects [5, 11].
Construction audit is conventionally involves accounting,
auditing and construction management disciplines [5].
Independent construction audits help to ensure that
overcharges and fraud are avoided in construction contracts.
Construction audit helps the project to know its place in the
industry. It enables comparison of project management processes,
schedule and cost control with best practices in the industry. [4]
reported that the topmost vital importance of CA is; checking and
prevention of corruption, accountability and financial probity,
ensuring that there is efficiency, economic consistency and
standard for meeting the quality target, ensuring adherence to
practices and procedures, and reduction of cost overrun.
Better ways of managing a construction projects risks,
ensuring proper functioning of control measures and procedures,
and enabling parties to the contract, to be honest in their dealings
are the important function of audit [10]; this is particularly
important via contract terms checking and identification of
overcharges. Construction audit gives the assurance that the
financial aspects of a project are well monitored and managed.
This helps to strengthen the relationships of clients and
construction organisations. Performing audits help to ensure that
the cost structure of projects are verified and reviewed so that
closeout time is shortened, and contractors can receive their final
payment [10]. In addition, construction companies are better
equipped and strengthened to face potential or new projects with
the report of audit. This implies that lessons are learnt from the
previous project to improve the performance of construction
projects and the performing organisations' performances.
Construction audit helps in the recovery of the cost
emanating from the default of a party. The parties concerned or
responsible for the cost to spiral out of control will have to pay
for his/her defaults. An audit also put the project manager into a
state of being alert to ensuring that production activities are done
correctly and within project scope and requirements [12]. CA help
to assess whether a project is progressing well in terms of being
ahead or behind schedule and what has been achieved in terms of
output. This is important as valuations are based on work done.
Furthermore, it ensures that procedures on how to handle
dangerous materials, equipment and motions on site are followed.
This is important in providing a safe work environment for the
artisans and tradespeople and other supervisory management
staff. [13] posit that one of the major functions of CA is quality.
CA shows what is working and what is not working in terms of
quality of work. When the quality of work is to standard, the
customers will be satisfied and the project will flow smoothly
without any disputes. According to [14], a construction audit
when properly applied will ensure that projects resources are kept
under control from the inception of a project to the closeout. It
particularly ensures that; areas, where risks are likely to be high,
are identified, ensure that contracts terms are complied with and
the accuracy of charges and billings are verified, project funds are
used judiciously, helps in reporting of potential cost savings,
recovery or avoidance, helps in eliminating inefficiencies, help to
identify areas of improvement in processes, helps in the resolution
of identified issues and report status for appropriate remedial
action to be taken, and helps in the timely closeout of projects.
[15] posit that Construction projects are audited to
ascertain the economy, efficiency, project stakeholders’
effectiveness, project compliance with statutory, regulatory and
corporate guidelines. Construction audit revolves around finance
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Okereke, Muhammed and Eze, ITEGAM-JETIA, Manaus, v.8 n.33, p. 26-32, Jan/Feb, 2022.
and budgeting, procurement processes, project management,
technical and legislative issues [5]. However, the fundamental
function of auditing centres on finance and budgetary auditing.
Auditing the financial aspect of construction activities cover the
inspection of all projects’ financial records and figures [11].
Therefore, to guarantee value for clients and investors monies, all
vital accounting standards and legal requirements must be
followed. Failure to carry out an audit means that the real
financial situation of the project as well as time and other project
resources cannot be assured [16].
The role of auditing the procurement process is to ensure
that guidelines for procuring goods and services are followed
without deviations. A lot of project resources are wasted, projects
have failed to meet their requirements, claims and disputes have
evolved; as a result of following the wrong route of procurement.
Construction projects have even been abandoned as a result of
fraudulent procurement. Therefore, controlling the bidding
process is a critical aspect of construction projects that must not
be overlooked or ignored [5]. Construction stakeholders rely on
construction audits to make a judgement of the quality of publicly
procured projects. Project management audit involves auditing the
project management and the management of the daily transaction
of the projects. Project management audit reveals the actual
performance of every stakeholder against the initial project plan
prepared at the inception [15].
Technical Auditing of construction projects helps to check
that the prescribed engineering procedures and methods are
monitored and evaluated at the project construction phase. [11]
submitted that technical auditing also ensures that the technical
capabilities of the project staff are within the acceptable standard
required by professional regulatory institutions. The Technical
skills and expertise of the project team are necessary for a better
project outcome. Professional technical skills auditing has
attracted a lot of attention recently by both researchers and
industry practitioners [17, 15], due to the increased spate of
building collapse. The legislative function of CA ensures that
construction projects are in conformance with the statutes and
regulations of the project location [5]. The legislative dimension
of auditing is vital for the successful and satisfactory delivery of
critical facilities and infrastructure projects in Nigeria.
The critical areas of applications and functions of
construction audit are shown on figure 1 below.
Figure 1: Benefits of Construction Audit.
Source: Modified from [4].
III. MATERIALS AND METHODS
This study assessed the benefits of construction audits with
a view to establishing that it is a useful tool in controlling
projects. The well-structured questionnaire was used in this study
to garner relevant data from consultants and contractors involved
in the delivery of both public and private projects, especially in
Port Harcourt, River State, Nigeria. Port Harcourt is the state
capital of rivers state which is one of the states in Nigeria that is
very rich in oil and gas and other natural resources. The presence
of these natural resources attracts a lot of construction
organisations, oil exploration companies as well as other
companies. Investors, professionals, construction tradespeople as
well as people from all works of life are also attracted to the state
because of the many building and infrastructure projects being
undertaken by both state and federal government [18, 19].
The questionnaire is simple, easy to use and has the
capacity to reach wider audiences in a shorter time and lower cost
[20]. The questionnaire used gathered data on the respondents'
background information, Frequency of use of auditing to control
construction projects, Level of agreement of construction audit as
a project control tool and the benefits of construction audit in
project control. The questionnaire was designed based on a 5-
point Likert scale in which 1 is the lowest scale and 5 is the
highest scale.
Five (5) active construction sites and six (6) recently
completed projects that are publicly owned were identified during
a preliminary survey of the study area. This makes is a total of 11
construction projects that were sampled. The consultants and
contractors involved in the projects were identified, contacted and
sampled. The lead consultants and main contractors were
involved in the study. This was to ensure that quality data are
obtained and that experienced experts on the subject of this study
participate in it. Three (3) management level personnel from the
consultant organisation participated in the study. Five (5)
management level personnel of the contracting organisations were
sampled. These represent a total sample size of 88 (33 experts
from consulting and 55 experts from the contracting
organisations). It is the understanding of this study that this
sample size is representative enough for the study.
The purposive sampling technique was adopted in the
administration of the questionnaire by the researchers. This
sampling technique is suitable in a study where the experienced of
the participants is very important as well as their availability for
the survey. 100% of the administered questionnaires were
retrieved and this response rate was achieved due to the several
follow-up calls and repeat site visits to remind the participants of
the importance of the study.
Data analysed were done through the use of frequencies,
percentiles, mean scores and Mann-Whitney U. The mean scores
of the assessed variables were used to rank the benefits of
construction audit while an independent sample test was used to
determine the relationship in the perception of the consultants and
contractors. The reliability of the research instrument was tested
using Cronbach's alpha test. An alpha value of 0.916 was obtained
for data on the benefits of construction audits (See Table 1). This
implies that the instrument is reliable and data obtained are of
good quality and unbiased. The methodological flow chart is
shown in figure 1 below.
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Okereke, Muhammed and Eze, ITEGAM-JETIA, Manaus, v.8 n.33, p. 26-32, Jan/Feb, 2022.
Table 1: Reliability Test.
N
%
Case Processing Summary
Cases
Valid
88
100.0
Excludeda
0
0.0
Total
88
100.0
Reliability Statistics
Cronbach's Alpha
0.916
N of Items
20
Source: Authors (2021).
Figure 2: Study Methodological procedure.
Source: Authors, (2021).
IV. RESULTS AND DISCUSSIONS
IV.1 BACKGROUND INFORMATION OF RESPONDENTS
From Table 2 37.50% of the respondents are from
consultants and 62.50% are from the contractors' organisations.
The profession of the participants showed that Architects are
(26.14%), Builders (11.36%), Engineers (36.36%), and Quantity
surveyors (26.14%). In terms of their years of experience, it can
be seen 32.95% have spent between 5-10 years in the industry,
37.50% have spent 11-15years, 15.19% had spent 16-20years, and
those who have spent over 21 years are 13.64%. The educational
qualification of the participants indicates that those with HND are
(22.73%), PGD (13.64%), BSc/B.Tech (38.64%), M.Sc/M.Tech
(22.73%), and PhD holders are 2.27%. Furthermore, the
professional qualification of the respondents indicates that the
majority of them are corporate members of their various
organisations and 11.36% are probationer members of their
professional bodies.
It is evident that the respondents are academically and
professionally qualified and have the requite experiences to give
information that will aid in meeting the subject of this study.
Table 2: Respondents and organisation profile.
Variables
Classification
Freq.
%
Cum. %
Organisations
Consultants
33
37.50
37.50
Contractors
55
62.50
100.00
TOTAL
88
100.00
Participants professions
Architect
23
26.14
26.14
Builders
10
11.36
37.50
Engineers (Civil/structural & Services)
32
36.36
73.86
Quantity Surveyors
23
26.14
100.00
TOTAL
88
100.00
Years of experience
0-4years
0
0.00
0.00
5-10years
29
32.95
32.95
11-15 years
33
37.50
70.45
16-20 years
14
15.91
86.36
21-above
12
13.64
100.00
TOTAL
88
100.00
Highest Educational
Qualification
Higher National Diploma (HND)
20
22.73
22.73
Postgraduate Diploma (PGD)
12
13.64
36.36
Bachelor of Science/Technology (B.Sc./B.Tech)
34
38.64
75.00
Master’s Degree (MSc./M.Tech.)
20
22.73
97.73
Doctorate (PhD)
2
2.27
100.00
TOTAL
88
100.00
Participants Professional
Affiliation
Member Nigerian Institute of Architect (MNIA)
18
20.45
20.45
Member Nigerian Institute of Builders (MNIOB)
10
11.36
31.82
Member Nigerian Society of Engineers (MNSE)
29
32.95
64.77
Member Nigerian Institute of Quantity Surveyors
(MNIQS)
21
23.86
88.64
Probationer
10
11.36
100.00
TOTAL
88
100.00
Source: Authors, (2021).
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Okereke, Muhammed and Eze, ITEGAM-JETIA, Manaus, v.8 n.33, p. 26-32, Jan/Feb, 2022.
IV.2 FREQUENCY OF USE OF AUDITING TO CONTROL
CONSTRUCTION PROJECTS
Figure 1 shows the result obtained from the analysis of the
data gathered on how frequent auditing has been used to control
construction projects. It is obvious from fig.1 that the frequency
of use of auditing to control projects ranges from moderate to
very high. This shows that construction auditing is a recognised
practise in the construction industry of Nigeria.
Figure 3: Frequency of use of auditing in projects.
Source: Authors, (2021).
IV.3 CONSTRUCTION AUDITS PLAY SIGNIFICANT
ROLE IN PROJECT CONTROL
Figure 4 shows that the participants from the contracting
and consulting firms strongly agreed that construction audit plays
a significant role in the control of projects. This further shows the
consciousness of stakeholders in the construction industry to key
project resources under control and proper management. This
report supports the finding in figure 3 above.
Figure 4: Construction audit a project control tool.
Source: Authors, (2021).
IV.4 BENEFITS OF CONSTRUCTION AUDIT
The result of the analysis of data gathered on the benefits
of construction audit is shown in Table 3. The top 5 most
important benefits of audit application in construction are; to
reduced cost overrun (mean=4.76), Financial probity and
accountability (mean=4.59), aid in the recovery of cost to
promote cost savings (mean=4.57), to protect the clients from
avoidable and unnecessary claims from contractors (mean=4.53),
and ensure that project are delivered in accordance with the
project contract provision (mean=4.51). while the least ranked
benefits of auditing are; helps to establish actual progress and
work done on a project (mean=4.02), Ensure the provision of a
safe working environment for workers (mean=4.01), ensure that
projects are delivered in accordance with legislative provisions of
the location (mean=3.98), to ensure the compliance of all practice
and procedures. (Mean=3.90), and help improve return on
investment (mean=3.80).
Overall, regardless of the relative ranking of these
variables, they still represent the vital benefits obtained from the
application of auditing services on construction projects. This is
based on the range of the mean scores with a maximum mean of
=4.76 and the Minimum=3.80. This study revealed that the major
benefits of audit application in construction are; to reduce cost
overrun, financial probity and accountability, aid in the recovery
of cost to promote cost savings, to protect the clients from
avoidable and unnecessary claims from contractors, and ensure
that projects are delivered in accordance with the project contract
provision. This finding supports that report of [4, 15, 5, 10].
Honesty in dealing with parties in a construction contract is the
bedrock for prudent project management and success.
Construction audit reveals areas of dishonesty by the contractor as
over change, and manipulations of invoices and frauds are
detected and sanctions mated. As a major project management
function, auditing helps in ensuring that projects are delivered
within budget and planned duration. It helps contractors to get
their payment faster without undue delays [10]. The quality of the
finished building is assured, and the number of accidents on site is
reduced where construction audits are frequently performed [16,
5]. Construction audit is a critical project control function as its
application ensures that project activities are monitored from
inception to completion and facility management stages. There
will be savings in cost, fewer claims and disputes, lesser
interruption of work progress, and the achievement of good health
and safety and quality records and performance on a project that
implement auditing.
Mann-Whitney U-Test was carried out to; compare the
perceptions of the two groups of participants; especially in
determining the variables the respondents' view differs
significantly and the percentage of the variables with the same
rating pattern by the consultants and contractors. Mann-Whitney
U-Test revealed that the participants' views converge in
16(80.0%) of the variables. These variables have a significant p-
value of above 0.05; this implies that there is no significant
statistical difference in the way the participants rated these
variables. A significant statistical difference was observed in the
perception of the consultants and contractors on 4(20.0%) of the
variables. These variables have a significant p-value of less than
0.05. These variables are; Failures caused by time and cost
overrun are prevented through audit of projects (Z=-2.145), help
improve return on investment (Z=-4.598), to ensure production
efficiency, consistency and standard to meet the quality target of a
project (Z=-2.125), Analysis of problem areas of the project to
generate data for improving future contract delivery (Z=-2.433),
and used to check project management functions of project
stakeholders (Z=-0.173).
23,86%
30,68%
28,41%
11,36%
5,68%
Very High
High
Moderate
Low
Very Low
52,27%
32,95%
11,36%
3,41%
0,00%
Strongly agree
Agree
Moderately
agree
Disagree
Strongly agree
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Okereke, Muhammed and Eze, ITEGAM-JETIA, Manaus, v.8 n.33, p. 26-32, Jan/Feb, 2022.
Table 3: benefits of auditing in construction projects.
S/No
Variables
mean
score
S.D
Rank
Mann-Whitney U
Z Sig.
1
To checkmate fraud and corrupt practices
4.42
1.1113
8th
-1.245
0.213
2
to reduce cost overrun
4.76
0.5672
1st
-1.898
0.058
3
Financial probity and accountability
4.59
1.0130
2nd
-0.379
0.705
4
to protect the clients from avoidable and unnecessary claims
from contractors
4.53
1.1442
4th
-1.117
0.264
5
To improve understanding of project environment for proper
control
4.50
1.0283
6th
-1.732
0.083
6
Failures caused by time and cost overrun are prevented through
audit of projects
4.09
1.3615
15th
-2.145
0.032**
7
helps in controlling and mitigating project risks
4.15
1.1894
14th
-0.928
0.354
8
ensure that projects are delivered in accordance with legislative
provisions of the location
3.98
1.5461
18th
-1.752
0.080
9
ensure that projects are delivered in accordance with the project
contract provision
4.51
0.9942
5th
-1.845
0.065
10
improve the internal control of processes and procedures of
organisations
4.23
1.1619
12th
-0.217
0.828
11
aid in the recovery of cost to promote cost savings
4.57
0.8549
3rd
-0.971
0.332
12
Improves understanding of performance opportunities, penalties,
incentives, rights and obligations.
4.27
1.3107
11th
-0.352
0.725
13
Ensure the provision of a safe working environment for workers
4.01
1.4739
17th
-0.177
0.859
14
help improve return on investment
3.80
1.6129
20th
-4.598
0.000**
15
to ensure production efficiency, consistency and standard to
meet the quality target of the project
4.48
0.9823
7th
-2.125
0.034**
16
Analysis of problem areas of the project to generate data for
improving future contract delivery
4.34
1.1733
10th
-2.433
0.015**
17
used to check project management functions of project
stakeholders
4.23
1.2292
12th
-0.173
0.862
18
Ensure compliance and adherence to best practices in
construction contract procurement and management
4.41
1.0574
9th
-0.878
0.380
19
helps to establish actual progress and work done on a project
4.02
1.3303
16th
-0.237
0.813
20
To ensure the compliance of all practices and procedures.
3.90
1.4145
19th
-0.701
0.483
**P-value<0.05 Source: Authors, (2021).
V. CONCLUSIONS
This study assessed the benefits of construction audits with
a view to establishing that it is a useful tool in controlling
projects. The opinion of construction professionals in consulting
and contracting organizations was sampled using the well-
structured questionnaire and purposive sampling technique in Port
Harcourt, River State, Nigeria. The collected data were analyzed,
findings made and conclusions drawn.
The study revealed that the frequency of use of auditing to
control construction projects is high and it is a significant project
control tool. The major benefits of audit application in
construction are; to reduce cost overrun, financial probity and
accountability, aid in the recovery of cost to promote cost savings,
to protect the clients from avoidable and unnecessary claims from
contractors, and ensure that projects are delivered in accordance
with the project contract provision. Construction audit is a
critical project control tool as it focuses on helping clients to
achieve value for money. The contractor tries to avoid or reduce
unnecessary spending and ensure that works are done are those
captured in the contract.
Construction audit helps to instil discipline in the
adherence to contract provisions and in the control and
management of project resources. Construction project auditing
keeps every stakeholder focused on their performance their
functions towards meeting the project objectives, reducing
wasteful spending, reducing claims and other disputes in the
delivery of construction projects, especially of pubic natures.
Finance is the life-blood of every construction and developmental
project. It is the function of auditing that will ensure that projects
are delivered within the planned budget.
Construction experts' consultants and contractors are
exposed to the benefits of construction audits. This study adds to
the few existing bodies of knowledge on construction audit,
especially in Nigeria and other African nations. The imitation of
this study is in its sample size and geographical location. Care
should be taken when generalizing the finding of this study. A
similar study with a larger sample size and geographical coverage
is recommended in Nigerian or other African countries. This will
provide data for the purpose of comparison. An assessment of the
relative application of auditing at pre-contract and post-contract
stages of construction projects delivery should be assessed.
VI. AUTHOR’S CONTRIBUTION
Conceptualization: Dr. Reuben A. OKEREKE and Usman
MUHAMMED.
Methodology: Dr. Reuben A. OKEREKE, Usman
MUHAMMED and Emmanuel C. EZE.
Investigation: Dr. Reuben A. OKEREKE, Usman
MUHAMMED and Emmanuel C. EZE.
Discussion of results: Dr. Reuben A. OKEREKE, Usman
MUHAMMED and Emmanuel C. EZE.
Writing – Original Draft: Dr. Reuben A. OKEREKE, Usman
MUHAMMED and Emmanuel C. EZE.
Writing – Review and Editing: Dr. Reuben A. OKEREKE,
Usman MUHAMMED and Emmanuel C. EZE.
Resources: Usman MUHAMMED and Emmanuel C. EZE.
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Okereke, Muhammed and Eze, ITEGAM-JETIA, Manaus, v.8 n.33, p. 26-32, Jan/Feb, 2022.
Supervision: Dr. Reuben A. OKEREKE, Usman MUHAMMED
and Emmanuel C. EZE.
Approval of the final text: Dr. Reuben A. OKEREKE, Usman
MUHAMMED and Emmanuel C. EZE.
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