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Industries/Auto dealers

Audit file prep for auto dealers.

A dealership file is vehicle inventory, the floor plan that finances it and the receivables that follow each sale. The standard pack ties the books; the dealership-specific testing stays with your team unless agreed.

What every file gets

The pack is the same on every file, in every industry. It is built from the client’s QuickBooks books and the documents your firm sends.

Lead schedules
Every trial balance account classified to a US GAAP line, in Excel and PDF, with prior-year final, per-books, adjustment and final columns.
Tie-out of the draft
The client’s draft statements re-added and every line agreed to the trial balance. Differences are findings about the draft, never silent changes to the books.
Fixed-rule ledger checks
Revenue cutoff, duplicate payments, journal entry testing, split purchases, opening balances, flux analysis, bank reconciliation and more. Each finding names its rule.
Proposed entries
A finding cites the evidence line and the standard, and proposes an adjusting entry. Nothing is posted to the books.
Review trail
A reviewer decides each finding and records a reason. Initials and dates travel with the working papers.
Inputs received and missing
The file shows what arrived and what did not, tied to the findings that need it.

Where the judgment sits on a dealership file

These areas decide the file. Industry-specific schedules are not part of the standard pack. Whether CORAA drafts any of them for a given file is agreed on the intake call before anything is uploaded, and what is not agreed stays with your team.

Areas your team will spend its time on

  • Floor plan tie-out
  • Vehicle inventory
  • Contracts in transit
  • F&I chargeback reserve
  • Factory and parts

Typical PBC items from the client

PBC items from the client

  • Dealer management system inventory and deal reports
  • Floor plan lender statements and payoff letters
  • Contracts in transit listing with lender funding dates
  • Factory statement and incentive reports
  • F&I product chargeback history
  • Parts and service receivable listings

Where dealership files go wrong

Sold units still on the floor plan
A vehicle sold but not yet paid off from the floor plan is a control and covenant issue.
Contracts in transit that never fund
A deal booked as a receivable that the lender has not funded.
Used vehicle valuation
Aged used units carried at cost above market.

What stays with your firm on dealership files

Fulfilled by CORAA means CORAA AI drafts the file and CORAA Network reviewers clear every flag, with a line-by-line review log. Your manager and partner then review it as they would any staff-prepared file. Your firm keeps the client, the engagement letter, the professional judgment and the signature.

CORAA never signs, issues or reports on anything, and never contacts your client unless you ask us to. Your first audit is free, so you can judge the pack on a real file. After that the fee is flat, set by entity size, and messy books are included.

Free resources for this work

Guides, templates and calculators on this site that cover the same ground. All free to use.

GuideAuto Dealership Audit Guide: Floor Plan, Contracts in Transit and F&I IncomeGuideAuto Dealership Audits: F&I Chargebacks, Floor Plan and Vehicle InventoryTemplateAudit Program: Auto DealershipTemplateLower of Cost or NRV Inventory Test (ASC 330)TemplateCutoff Testing Workpaper (Sales, Purchases, Inventory)ToolBank Reconciliation Calculator: Bank to Book with EntriesToolCutoff Test Selector: Items Around Year End to Test

Questions firms ask

CORAA works from the exports the client provides: inventory, deal and receivable reports alongside the trial balance and general ledger. We ask only for what the file needs.
Your firm. Confirmations are sent and controlled by your firm.
Number of entities is one input to the flat fee. The intercompany elimination worksheet on this site is a free template.
Yes. For reviews the file centers on trial balance mapping, flux analysis and the draft statements tie-out.
Your first audit is free. After that, a flat fee per audit, set by entity size. Messy books are included, never a surcharge.

Sources: FASB ASU 2015-11, Inventory (Topic 330)

More in industries
IndustriesManufacturersInventory costing, reserves and cutoff: the pack, the PBC list and the judgment areas.IndustriesReal estate companiesRent, property cost and debt: the pack, the PBC list and the judgment areas.IndustriesBanks and credit unionsLoans, allowance and deposits: the pack, the PBC list and the judgment areas for institution files.
For US CPA firms

Join the CORAA waitlist

CORAA AI drafts audit working papers from your client’s QuickBooks books and does the first pass: lead schedules, tie-out, memos, draft notes and letters. CORAA Network reviewers clear every finding. Your firm reviews and signs.

  • First audit free, so you can judge the quality on a real file
  • Flat fee by entity size; messy books included
  • We work only with CPA firms, never their clients
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