Ensure compliance with the terms of your leasing and management contracts with our Building Contract Audit Work Program. This tool is an essential resource for strengthening oversight and compliance in property management and leasing contracts. It provides a structured approach to auditing building contracts, focusing on financial integrity, asset protection and operational controls. The program outlines clear objectives and a comprehensive scope and guides you through the process of examining contract compliance, verifying the accuracy of financial records, and evaluating the effectiveness of internal controls. It also includes detailed steps for information gathering, analytical review and targeted testing of key financial areas such as cash accounts, accounts receivable, property and equipment, other assets, liabilities, and expenses.

Included in the tool are practical instructions for reviewing documents, reconciling accounts and investigating discrepancies. This document emphasizes the importance of independent verification and reconciliation, ensuring that all transactions are appropriately authorized and recorded. By following the sample audit steps provided, you can identify potential risks, improve financial accuracy, and enhance the reliability of building management operations.

Audit steps include:

• Review a sample of leases that have expired in the past year to confirm that they are current and that the terms are consistent from one tenant to another.
• Determine that assets are accounted for and properly classified in the books.
• Verify that liabilities are properly distinguished as current versus long-term (test and verify the due date of selected obligations).
• Perform an overall analytical review of both the latest financial statements and the latest trial balance.