Construction
Financial detail across the life of a project.
The financial context
Project costs, variations, payment records and underlying agreements may need to be reconciled. Differences in timing and the basis of a calculation should be made visible before comparisons are relied upon.
Questions that shape the review
Are the records on a comparable basis?
Check the treatment of costs, variations, payment timing and the period covered.
Which assumptions affect the calculation?
Explain adjustments and identify matters needing technical or other specialist input.
From information to an explanation
The work should connect the source material to the question being considered. Differences in definitions, periods or assumptions need to be made visible, together with the effect of any missing records.
The resulting explanation should distinguish what is documented, what depends on judgement and what remains uncertain. Its form and level of detail depend on the agreed purpose.
A question of suitability
The practice’s relevant experience, independence and the information available must be confirmed before any engagement. The purpose, scope and reporting requirements are agreed before analysis begins.
Discuss the financial question.
Start with the background, the relevant period and what you need to understand.
Discuss an enquiry