EU funds absorption audit is conducted before at least a half of the grant for the project is used. The audit can be done:

• in the duration of the project (auditor’s opinion concerns the amounts and data only until the audit is being conducted)
• in the final phase of the project (preliminary examination after half of the grant is spent; final examination in the final phase of the project; final auditor’s opinion is issued after the final analysis, however some recommendations are made after the initial analysis in a letter to the board, where the auditor indicates identified errors and risks.)

The scope of the audit includes:

• internal control and defining the level of risks concerning incorrect use of EU grants,
• tests to ensure that internal controls were continuous,
• audit of cost eligibility, their documentation and recognition in a separate bank account itemized in the chart of accounts,
• analysis of the timeliness and amount of received funds,
• checking payout requests against accounts,
• chcecking credibility of project realization reports,
• verification of the way of monitoring the project (achieving the project objective).