Standardizing the Audit Process and Methodology for Construction Investment Projects: A Case Study of ASCO Audit and Valuation Firm

Abstract

Auditing the construction investment projects requires strict compliance with auditing standards and legal regulations. Meanwhile, voluminous documentation, project complexity, and constrained timelines compel independent audit firms to adopt rigorous and systematic audit processes and methodologies. This case study at ASCO, based on audit-process analysis and interviews with key personnel, shows that the firm has established a standardized process through systematic coding of audit phases, tasks, time budgets, and working-paper templates. ASCO also implements a risk-based approach that supports review procedures and facilitates audit file digitalization. Nevertheless, the current process may be overly burdensome for small-scale projects; detailed substantive testing remains resource-intensive; and certain internal guidelines are not fully consistent. Accordingly, the paper proposes improvement directions for independent audit firms more broadly: (i) standardizing required deliverables and quality control gates; (ii) modularizing the audit process and audit programs by project size–risk profile and type of works; (iii) designing audit strategies grounded in risk and materiality, with standardized sampling and scope-expansion rules; (iv) harmonizing working-paper templates and review mechanisms to reduce inter-team variation and strengthen training capacity; and (v) accelerating digitalization and the adoption of technology and AI along a support–standardization–control roadmap without replacing professional judgment.