RERA registration, approvals and project disclosures
Risk: Project registration, sanctioned-plan changes, quarterly updates or customer disclosures are incomplete or inconsistent with operational records.
Controls
- RERA registration tracker
- Approval and sanction repository
- Change approval workflow
- Quarterly disclosure review
Tests
- Match project master to RERA registration and sanctioned plans
- Review changes in layout/specifications and approval trail
- Check quarterly update support
- Trace customer commitments to disclosure records
Evidence
RERA registration, sanctioned plan, commencement certificate, approval tracker, change approval, disclosure filing and project master.
Booking, allotment and agreement for sale
Risk: Bookings, allotments, cancellations or agreement terms are processed without complete KYC, approval, pricing and legal documentation.
Controls
- Booking approval matrix
- KYC and customer file checklist
- Price/discount approval
- Agreement execution tracker
Tests
- Sample bookings from lead to allotment and agreement
- Review discounts, broker schemes and manual price overrides
- Age unsigned agreements and missing KYC
- Test cancellations and forfeitures
Evidence
Booking form, allotment letter, KYC, price approval, discount approval, agreement for sale, cancellation note and refund support.
Customer collections, escrow and receivables
Risk: Customer collections, milestone demands, bank deposits, escrow transfers, overdue receivables or refunds are not reconciled.
Controls
- Milestone demand control
- Collection-to-bank reconciliation
- Escrow/collection account review
- Receivables ageing review
Tests
- Match demand letters to construction milestones and agreement terms
- Reconcile receipts to bank and customer ledger
- Review old receivables and bounced receipts
- Test refunds and interest/penalty computation
Evidence
Demand letter, customer ledger, receipt, bank statement, escrow/collection account statement, ageing report and refund approval.
Project cost budget, WIP and cost allocation
Risk: Land, approval, construction, borrowing, overhead or common costs are misclassified, unsupported or allocated to wrong projects.
Controls
- Project budget baseline
- Cost-code master
- WIP capitalisation review
- Common-cost allocation policy
Tests
- Compare actual cost to budget by cost code
- Sample cost allocation across projects/towers
- Review WIP/capitalisation entries
- Test borrowing cost and overhead allocation support
Evidence
Project budget, cost-code master, WIP ledger, allocation working, borrowing-cost working, approval note and GL extract.
Contractor bills, RA bills and retention
Risk: Contractor running-account bills, advances, variation orders, retention, mobilisation or penalties are processed without certified work evidence.
Controls
- Contract work-order control
- Measurement book certification
- RA bill review
- Retention and advance tracker
Tests
- Match RA bills to work order, BOQ, measurement and site certification
- Review variation orders and rate deviations
- Reconcile advances and retention
- Test duplicate contractor invoices
Evidence
Work order, BOQ, measurement book, site engineer certificate, RA bill, variation order, retention ledger and payment proof.
Procurement, materials and site inventory
Risk: Cement, steel, tiles, fixtures, consumables or site materials are procured, issued, wasted or stolen without accurate project evidence.
Controls
- Approved vendor and PO control
- GRN and quality check
- Material issue note
- Site stock count and wastage approval
Tests
- Match PO, GRN, QC and contractor/site issue
- Review high-value material consumption against BOQ norms
- Count site inventory and reconcile variances
- Test scrap/wastage disposal and approvals
Evidence
Vendor master, PO, GRN, QC report, material issue note, BOQ consumption norm, stock count, scrap/wastage approval and invoice.
Brokerage, channel partners and marketing schemes
Risk: Brokerage, referral fees, customer schemes, freebies or marketing spends are paid without eligible sale, approval or tax support.
Controls
- Channel partner agreement
- Brokerage eligibility checklist
- Scheme approval
- TDS/GST review
Tests
- Match brokerage claims to eligible bookings and collection milestones
- Review duplicate/refunded/cancelled booking payouts
- Test scheme approvals and customer communication
- Tie TDS/GST treatment to support
Evidence
Broker agreement, booking file, collection milestone, brokerage working, scheme note, approval, TDS working, GST invoice and payment proof.
Revenue recognition, GST and tax interfaces
Risk: Revenue, GST, TDS, construction-contract tax computation or cancellation accounting is inconsistent with contracts, possession and project status.
Controls
- Revenue-recognition review
- GST rate and ITC review
- Cancellation/credit note approval
- Tax computation tie-out
Tests
- Tie revenue entries to contract terms, collection, possession and accounting policy
- Review GST treatment for project type and booking status
- Test cancellations and credit notes
- Compare tax computation to project cost/revenue support
Evidence
Accounting policy, customer contract, possession/handover record, GST working, credit note, tax computation, ICDS/contract working and GL.
Handover, defects, customer claims and legal cases
Risk: Possession, handover, defect liability, customer complaints, delays, claims or legal cases are not tracked to financial and compliance impact.
Controls
- Handover checklist
- Defect liability tracker
- Complaint and litigation tracker
- Provision/contingency review
Tests
- Sample possession files and handover checklists
- Age unresolved defects and complaints
- Review delay compensation and customer claims
- Tie legal cases to provisions/disclosures
Evidence
Possession letter, handover checklist, snag list, defect ticket, complaint log, legal tracker, claim working and provision note.
