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By Guy Waldo Dunnington

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The comparison of the international external and internal audit guidance regarding communications with the governance body/board is summarized in Table II. To comprehend the similarities and differences in the information the two groups proffer, it is helpful to begin by understanding the sources of both the demand for the external audit and the authority for the internal audit function. Authority/demand The demand for the external audit derives from the users of financial statements and their representatives and advisors.

2000). A number of factors contribute to such large variance in these reported findings. These include the extent of quality management practices implemented, the type of project, the form of procurement method used, and project complexity. Moreover, there is a lack of uniformity in the way in which rework cost data have been collected because of the various interpretations as to what constitutes rework. , 2000). Noteworthy, the measurement of rework costs in itself does not cause improvement – it is merely the starting point for establishing new knowledge (Love and Holt, 2000).

Rework cycle To understand the multiplier effect better, Cooper’s (1993) rework cycle will be used to demonstrate how and why rework can occur during the design stage of a project with respect to the production of contract documentation. Figure 2 illustrates the rework cycle for the production of contract documentation. The boxes in Figure 2 represent activities that are undertaken during the contract documentation process. At the start of the documentation phase, all activities will invariably reside in a pool of work to be undertaken.

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