Internal audit support

Internal audit support
Capital programs
PwC can help your organization
implement a robust assurance function
for your capital project or program.
Our solution assists internal audit
departments with the planning,
testing, evaluating, and reporting of
key functional areas relating to your
organization’s capital project so that
your company can improve capital
project delivery performance and
mitigate associated risks.
The assurance process
Issue. Internal audit departments of
organizations undertaking capital
projects often do not have in-house
expertise in the understanding of
capital project risks, how those risks
differ from typical financial and
business risks, or have the skill sets
necessary to audit controls relating to
those risks.
In the current economic
environment, organizations are
under tremendous pressure to
better manage capital project
costs and squeeze new efficiencies
from key operational areas.
While operational departments
are tasked with identifying the
appropriate project delivery
strategy and executing a robust
contractual agreement with the
seller, committees and boards of
directors are frequently asking
their internal audit function to
assist management in achieving
efficiencies through the execution
of carefully selected audits,
evaluations, and analyses of the
organization’s capital projects.
To effectively assess their
organization’s internal control
environment, internal audit
departments need to understand
the capital project risk
environment and the capability
of their project governance
and management functions to
mitigate the challenges inherent
in project planning, development,
and execution.
In order to achieve the company’s
objectives, internal audit
departments often retain the
services of an independent third
party advisor to test critical
controls, identify non-compliance
with existing policies, procedures,
and contractual agreements,
and recommend improvements
to project governance and
corporate practices.
Action. PwC can assist your internal
audit function with developing a
comprehensive plan to improve your
capital project performance and
reduce risk. Specifically, we support
enhancing the following activities:
• Performing a baseline risk
assessment. An initial risk
assessment is critical in
understanding the organization’s
strengths and weaknesses of key
capital project policies, procedures,
processes and controls. This
assessment will include in-depth
interviews with your project
management team and a detailed
review of your technical and
financial documents. The results
of this assessment will be used to
identify potential areas of further
detailed review and form the basis
for a comprehensive audit plan.
• Developing a comprehensive
audit plan. PwC has developed
a Procedural Framework that
defines typical capital project
elements across the project
life cycle. The focal points for
a review of these elements are
organization, procurement and
contract management, scope
management and change control,
cost management, schedule
management, business systems
and technology, risk and issue
management, and communication
and reporting
• Planning of functional audits.
Utilizing the functional capital
project elements identified in
the comprehensive audit plan,
determine the elements to be
reviewed and how to review them,
document the specific scope of
work and associated audit steps for
each element, and communicate to
the project management team the
rationale for timing based on the
existing project schedule.
• Executing of functional audits.
Execute the audits in accordance
with the comprehensive audit plan,
and in accordance with internal
audit, company, and American
Institute of Certified Public
Accountant (AICPA) guidelines.
• Communicating audit results.
Based on the executed audits,
report relevant control weaknesses,
gaps, or significant observations,
in addition to recommended
improvements, to necessary
management stakeholders utilizing
approved internal audit and
company procedures.
Impact. Benefits of using PwC’s
internal audit support for capital
programs may include the following:
• Identification and remediation
support of ineffective or missing
policies, procedures or controls
As capital project delivery becomes increasingly
complex, PwC is leveraging the experience and
expertise of its industry professionals to help our
clients deliver the value that their shareholders
expect from major capital investments.
• Identification and remediation
support of deviation from better
practices and inefficient techniques
being utilized by the project
management team
• Identification of higher risk
activities requiring immediate
management focus
• Identification and recommendation
of cost reduction, avoidance, or
recovery opportunities
• Lessons learned and actionable
recommendations for continuous
improvement on existing or future
capital projects
PwC offers a number of other key
project solutions for consideration:
• Capital Planning and Portfolio
Management/Optimization
• Capital Project Management
• Capital Project Regulatory Support
• Capital Project Technology
• Capital Project Infrastructure Deals
• Construction Project Audits
• Real Estate Advisory
• Tax Diligence and Structuring
• Troubled Project Turnaround and
Forensics
Contact us to discuss the complexities
of your project and co-develop a custom
approach for your organization.
Contacts
Peter Raymond
Capital Projects & Infrastructure,
US Leader
McLean, Virginia
+1 703 918 1580
[email protected]
Daryl Walcroft
Capital Projects & Infrastructure
San Francisco, California
+1 415 498 6512
[email protected]
Stephen Lechner
Capital Projects & Infrastructure
San Francisco, California
+1 415 498 6596
[email protected]
Ralph Roam
Capital Projects & Infrastructure
Philadelphia, Pennsylvania
+1 267 330 2241
[email protected]
Anthony Caletka
Capital Projects & Infrastructure
Houston, Texas
+1 713 356 5871
[email protected]
Combining engineering, project controls, and business acumen PwC’s capital
projects and infrastructure professionals serve the entire life cycle of acquiring,
financing, investing in, planning, designing, procuring, constructing/ implementing,
commissioning, operating and maintaining complex greenfield or brownfield capital
assets, programs or portfolios. Our professionals have industry experience as project
managers, designers, engineers (civil, environmental, structural, mechanical, electrical, industrial, and nuclear), construction managers, critical path method (CPM)
schedulers, cost analysts, construction attorneys and accountants.
www.pwc.com/us/capitalprojects
Certain services are not permitted for audit clients and their affiliates.
© 2013 PricewaterhouseCoopers LLP, a Delaware limited liability partnership. All rights reserved. PwC refers to the US member firm, and may sometimes refer to the PwC network. Each member
firm is a separate legal entity. Please see www.pwc.com/structure for further details. This content is for general information purposes only, and should not be used as a substitute for consultation
with professional advisors. Solicitation AT-14-0029