Chapter 1 Background of the organization
Addis Ababa Housing Construction Project Office (AAHCPO) is one of the Units administered by the City Government of Addis Ababa. The Project Office is an independent unit empowered by the City Government to construct standardized houses using cost effective technologies in the existing and expansion areas of the City. As indicated in the directive No 1/2001 (E.C.) article 6 with reference to the Project Office Establishment Proclamation No 15/2004 article 10, the main sources of funds shall be: 1.
Budget fund of the City Government of Addis Ababa for the Project Office, 2.
Donation from any charity organization that support the objective of the project office, 3.
Public’s Contribution, and
Loan obtained from Commercial Bank of Ethiopia (CBE).
AAHCPO is in operation for the past 8 years and works under the regional administration and reports to the Addis Ababa City Administration as a budgetary institution.
Currently the overhead of the HCPO is met through budgetary allocation; the housing construction cost is primarily funded through loans arrangement with Commercial Bank of Ethiopia.
HCPO is headed by a General Manager (GM) Head quarters has 3 main department and 6 supportive department.
The 3 main departments are
Design & Construction
Material Supplies & Logistics
Medium & Small Scale Enterprise Extension
The 6 supportive departments are
Finance, Procurement and Property administration
Plan, Research & Budget
Capacity Building and Follow up
HCPO have 15 branch offices, each have a construction, material supplies & logistics, finance, procurement and property administration, medium and small scale enterprise extension and human resource team. Ledeta Housing Construction Project Branch Office is the one from 15 branch offices.
Small & Medium income group citizen in Addis Ababa will be having quality and low cost houses by 2012 EC.
3. Alert for Change
4. Quality & Cost Effectiveness
5. Fair distribution of Wealth
6. We guide by trust and knowledge
7. Struggling for the persist of development
Chapter 2: Review of Related Literature
1. Audit Evidence
2.1 Meaning of Audit Evidence
Audit evidence generally refers to the information collected for reviewing the financial transactions of a company in addition to its internal practices and other essential factors required for the certification of financial statement.
Evidence is any information used by the auditor to determine whether the information being audited is stated in accordance with the established criteria.
The type and amount of the considered auditing evidence varies significantly on the basis of the type of organization being audited in addition to the required scope of the audit.
To satisfy the purpose of the audit, auditors must obtain a sufficient quality and volume of evidence. Auditors must determine the types and amount of evidence necessary and evaluate whether the information corresponds to the established criteria.
The main objective of any audit is to find out the compliance of a company’s financial statements with the GAAP applicable to the jurisdiction of the entity.
2.2 Methods of obtaining audit evidence
Audit evidence is one of the basic principles that govern an audit. There are various methods that can be adopted to obtain evidence. The most common ones include. * Inspection of documents, records and tangible assets
* Enquire and confirmation
* Analytical procedures
Audit evidence is evidence obtained during a financial audit and recorded in the audit working papers.
* In the audit engagement acceptance of...
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