Module 6: Preventing corruption in project construction

Auditing

Carry out financial and technical audits on the project at suitable intervals during construction, and upon completion.
The purpose of financial audits is to establish that:
- all payments by the project owner in respect of the project were properly made to legitimate persons and for legitimate purposes
- all revenues due to the project owner in respect of the project have been received in full, and were from legitimate persons and for legitimate purposes
- the financial management in relation to the project was properly carried out in accordance with applicable laws, regulations and financial management procedures.
The purpose of technical audits is to establish that:
- there was a legitimate need for the works, equipment, materials, products and services supplied in relation to the project
- the project design and specification:
  - are in accordance with applicable laws and regulations and good technical practice
  - provide good value for money for the project owner
  - were based on the legitimate needs of the project owner
  - were not intended to benefit any particular project participant
- the project has been properly completed in accordance with the design and specification.
Audits may be by way of sample, and may focus on higher risk and higher cost items and activities, rather than looking at all items and activities.
Auditors to be:
- aware of the risk that any deficiencies they identify may be caused by corruption
- required to make appropriate reports to the board of the project owner.
In the case of public sector contracts, the auditing should ideally be undertaken by a reputable and suitably qualified independent third party who in addition to the above requirements:
- issues periodic public reports
- reports suspicions of corruption to the investigating authorities.

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