GICALE, DEANNA MAE T.

ACT1207 – Sec 5

Viewing Activity – Construction Activity

Construction industry comprises of individual, and entities engaged in building,

alteration and/or repair. It composes two different types of construction: the residential
and commercial/industry construction. In the Philippines, the construction industry is
continuously growing. It is growing because many international investors see a lot of
potential in our country to establish their businesses. Aside from that, it is also highly
supported by Government initiatives which then resulting to improvements of exporting,
trading and it gives high impact to our economy. However, during the Pandemic
construction industry also suffers from this. Construction industry experienced some
delay and cancellation of construction projects. Lacking laborers or labor shortage also
happened because of covid.

One of the audits and accounting considerations that need look for is the
determination of amount of revenue, costs, estimated costs to complete. All these
revenue and costs are subject to judgment and highly involvement of estimates. The
control that may conduct for the contract revenues is to review the current estimates of
revenue based on supporting billings. They can also verify accuracy of percentage of
completion, revenue, and costs.