Document Checklist for an Audit
Preparing for a property cost audit requires gathering a comprehensive set of documents. Having everything organised ensures the audit is thorough, efficient, and accurate. EG-Audit provides this checklist to help landlords, project managers, and facilities managers prepare all necessary records before the audit begins. Proper documentation reduces delays, uncovers potential overpayments, and maximises the value of the audit process.
1. Utility Bills and Statements
Collect all invoices for electricity, gas, and water, ideally covering the last 12 to 24 months. Include detailed statements showing meter readings, consumption patterns, and charges. Ensure any adjustments, corrections, or disputed charges are also documented. Accurate utility bills allow EG-Audit to verify consumption, detect billing errors, and identify overcharges.
2. Lease Agreements
Lease agreements for all tenants are essential to understand obligations regarding service charges, utilities, and other shared costs. Include historical leases if they reference ongoing terms. EG-Audit reviews these agreements to confirm allocations are correct and that charges comply with contractual obligations, reducing the risk of disputes or overpayments.
3. Service Charge Records
Gather all service charge statements, invoices, and supporting documentation for cleaning, maintenance, waste management, and other communal services. Include evidence such as receipts, work orders, or supplier confirmations. EG-Audit examines each line item to ensure allocations are fair and accurately reflect the services provided, identifying any errors or inconsistencies.
4. Contracts with Suppliers and Service Providers
All contracts with utility providers, maintenance companies, and other service providers should be collected. Include any amendments, extensions, or renewal agreements. EG-Audit checks that charges comply with contractual terms, highlights hidden fees, and ensures billing matches agreed-upon rates and responsibilities.
5. Meter Readings and Consumption Records
Document all historical and current meter readings, including individual meters for multi-tenant properties. Record dates and values to verify that invoices reflect actual consumption. EG-Audit cross-references meter readings with billing records to detect overestimates, misallocations, or errors that could result in overpayment.
6. Historical Correspondence with Suppliers
Include emails, letters, or notes regarding billing disputes, rate negotiations, or service queries. These records provide context for anomalies or unusual charges. EG-Audit reviews correspondence to identify unresolved issues, verify corrections, and ensure that all disputes have been accurately addressed.
7. Financial Records and Payment Proofs
Provide evidence of payments made, such as bank statements, remittance advices, or payment confirmations. Comparing payments to billed amounts allows EG-Audit to detect discrepancies, double payments, or unrecorded charges, ensuring every payment is accounted for.
8. Historical Reports or Previous Audits
If previous audits have been conducted, include the reports and findings. Historical audits provide valuable benchmarks and highlight recurring issues. EG-Audit uses past reports to identify trends, recurring errors, or areas that require additional scrutiny during the current audit.
9. Regulatory or Compliance Documents
Include any documents related to regulatory compliance, statutory charges, or environmental levies. EG-Audit ensures that charges comply with legal requirements and that any additional levies are applied correctly, avoiding overpayment due to misinterpretation of regulatory obligations.
10. Tenant Allocations and Shared Usage Records
For multi-tenant properties, gather records showing how utilities and services are shared among tenants. Include any formulas, percentages, or agreements used to allocate costs. EG-Audit verifies that allocations are fair, accurate, and in line with contractual agreements, preventing disputes and overpayments.
Benefits of a Complete Document Checklist
Having all necessary documents ready before the audit starts ensures efficiency, accuracy, and transparency. EG-Audit can conduct a thorough review without delays, uncover hidden overcharges, and provide actionable recommendations. Proper documentation also protects property professionals by providing clear evidence to support any corrections or disputes with suppliers.
Take Action Today
Preparing your documents is the first step toward a successful audit. EG-Audit provides independent, evidence-based audits to review all charges, allocations, and invoices. Protect your property budgets and ensure financial clarity by booking your audit today.