Audit engagement
Full manufacturing variance audit
End-to-end review of material, labour, and overhead variances for one plant and one costing period, with evidence packs for the board.
Who this is for
Finance controllers, plant accountants, and CFOs at manufacturers who need a defensible explanation of why standard cost and actual cost parted company — before the next board pack or lender review.
Result you receive
A written variance narrative covering material price and usage, labour rate and efficiency, and overhead absorption, supported by an evidence appendix (scrap tickets, BOM revisions, time sheets, purchase invoices). Findings are ranked by impact, with recommended follow-ups for costing standards and shop-floor controls.
Scope included
- Kick-off with finance and operations to confirm the review period, standard-cost method, and plant boundaries
- Desk review of the general ledger, cost sheets, and BOM masters for the period
- On-site walkthrough of production, stores, and scrap handling
- Isolation of price, usage, rate, and efficiency variances with sample testing
- Draft report workshop with your team, then a final report suitable for board circulation
Scope excluded
- Full statutory financial statement audit
- Valuation of inventory for tax filings
- Implementation of new ERP modules or costing software
- Ongoing monthly bookkeeping
How we work
Engagements are led by a senior variance auditor from our Kwun Tong practice, supported by a field associate for sampling and evidence logging. You appoint a single plant contact for access to stores and supervisors.
Timeline
Most single-plant engagements run three to five weeks from kick-off to final report, depending on data readiness and shift patterns. Multi-line plants or incomplete BOM histories may extend the field phase.
Delivery
Work is delivered on site at your plant plus desk days at Millennium City 3, 370 Kwun Tong Road, Kwun Tong. Remote document review covers periods when the line is down.
Preparation
Please have ready: standard cost sheets, BOM revision log, scrap and rework tickets for the period, labour time summaries by work centre, and purchase invoices for key materials. A floor plan and shift roster speed the walkthrough.
Constraints
We audit historical variances; we do not certify forward-looking budgets. Access to the shop floor during operating hours is required. Findings remain confidential to your organisation unless you authorise wider circulation.
Fee basis
Quoted as a fixed fee after a scoping call. Complexity drivers include number of work centres, BOM depth, and quality of scrap documentation. See Fees for indicative ranges.
Next step
Request this engagement with your plant location, costing method, and the period under review. We reply within two business days.
Commission this audit
Share your costing method, period, and plant layout. We propose a scoped fee within two business days.
Request this engagement