A technical audit evaluates processes, systems, or projects to identify deficiencies or areas for improvement. The document outlines the objectives, stages, and benefits of technical audits. It also discusses how to plan and conduct an audit, including staffing an audit team, developing a plan and checklists, analyzing results, documenting findings, and addressing resistance to recommendations. Technical audits aim to improve processes, ensure quality, manage risks, and enhance transparency and cost-effectiveness.

1. -Prepared
By
Dhurba Adhikari[IME/073/04]

2.  Technical Audit (TA) is an audit performed by an
auditor, engineer or subject-matter expert evaluates
deficiencies or areas of improvement in a process,
system or proposal. Technical audit covers the technical
aspects of the project implemented in the organization

3. Primary Objective
 To produce a report by the auditor of his
opinion of the truth and fairness of relevant
statements so that any person reading and
using them can belief in them.
Secondary objective
 To detect Error and Fraud.
 To prevent Errors and Fraud by the
deterrent and moral effect of audit.

4. Planning & Design
Procurement or Purchase
Implementation
Impact of Project

5.  Improvement in internal control systems to
mitigate the potential risk.
 Improvement in the quality of service.
 Assurance of Revenue.
 Transparent and cost effective procurement
of goods and services.
 Completion of project on time.
 Reduction of project cost and annual
operating cost.
 Helps re-scheduling of project activities.
 Performance improvement of a system

6.  Staffing the Audit team.
 Creating an audit project plan: TOR ,
checklist.
 Laying groundwork for audit.
 Analyzing audit result.
 Shearing audit result.
 Writing audit result: Documentation
 Dealing with resistance to audit
recommendations
 Building on ongoing audit programs.

8. Environment, Transport and Works Bureau
Technical Circular (Works);
 Works Branch Technical Circulars/Works
Bureau Technical Circulars;
 Financial Circulars;
 Departmental Technical Circulars
/Instructions;
 Relevant Building/Engineering Manuals
and/or Handbooks;

9.  Relevant General Conditions of Contract;
 Relevant General Specifications and
Standard Drawings;
 Relevant Standard Method of Measurement;
 Contract Documents and Supplementary
Agreements (if any);
 Consultancy Agreements; and
 Any other relevant written policies, circulars,
instructions or procedures which the Contract
Adviser considers appropriate.

10. There are lots of technical checklists out
there. And with good reason—technical
audit require inspecting many different
things in many different places. Checklists
are perfect. They are simple tools with lots
of benefits. Checklists are:
1. Comprehensive: Remember you to check
2. Productive: What to do next?
3. Communicable.

14.  Audit report most contain the following topics.
A. Executive summery
B. Background information
C. Description of Project
D. Statement on Auditing Standards
E. Result: interviews, data analysis, Checklist
etc.
F. Recommendation: Include condition ,
criteria, causes, effects.

15.  ISO 9001:2008 – Quality Management System
 ISO 14001:2004- Environment Management
System
 OHSAS 18001:2007- Occupational Health &
Safety Management System
 ISM – International Safety Management Code
 ISO 29001:2010- Quality Standards Specific to Oil,
Gas & Petrochemical Industry
 HSE Manuals
 Integrated Management Systems
 HR Manuals

17.  The main purpose of this audit was to ensure that
accounts receivable are being managed fairly,
efficiently and effectively.
 Audit criteria and techniques were developed in
order to gather sufficient information on these
subjects. The methodology used consisted
primarily of interviews, data analysis, and a
review of the relevant documentation.
 However, the management framework for
accounts receivable has certain gaps, and steps
should be taken by management in order to
improve its efficiency