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Industries/Real estate

Audit file prep for real estate companies.

Real estate files are built on the rent roll, the property ledger and the loan statements. The standard pack ties the books to the draft statements; property-specific schedules are agreed up front.

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 real estate 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

  • Rent roll to revenue
  • Property cost and depreciation
  • Mortgage and loan schedules
  • Security deposits and escrows

Typical PBC items from the client

PBC items from the client

  • Year-end rent roll and lease abstracts for the larger tenants
  • Closing statements for acquisitions and dispositions
  • Lender statements and loan agreements
  • Property tax and insurance bills
  • Tenant security deposit ledger
  • Related-party management agreements

Where real estate files go wrong

Rent concessions
Free rent periods and step-ups change the revenue pattern.
Repairs booked as capital, or the reverse
Large repairs coded to property, or property costs coded to expense.
Affiliates and shared costs
Management fees and loans between entities under common ownership need disclosure.

What stays with your firm on real estate 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.

GuideReal Estate Company Audit Guide: Project Costs under ASC 970 and Impairment under ASC 360GuideReal Estate Lessor Revenue Audit: Straight-Line Rent under ASC 842GuideREIT Audit Guide: Qualification Tests and Real Estate InvestmentsGuideHOA and Condominium Association Audits: Reserves, Assessments and ASC 972TemplateAudit Program: Real Estate EntityTemplateDebt and Interest Rollforward ScheduleTemplateRelated Party Transactions Schedule (AU-C 550 / ASC 850)ToolCapitalized Interest Calculator (ASC 835-20)ToolLoan Amortization Schedule Calculator

Questions firms ask

There is an HOA audit guide and an audit program on this site. Whether an HOA file fits is settled on the intake call.
The qualification tests and the specialist work stay with your firm. Whether the entity fits is settled on the intake call.
Lease terms are PBC items. The file shows what arrived and what did not, so the request to your client is short.
The client and, where needed, your specialist. CORAA does not value property or perform valuation work.
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 2016-02, Leases (Topic 842)

More in industries
IndustriesConstruction contractorsContractor audits turn on the WIP schedule. The standard pack, the PBC list and where the judgment sits.IndustriesBanks and credit unionsLoans, allowance and deposits: the pack, the PBC list and the judgment areas for institution files.IndustriesNonprofit organizationsRestricted net assets, grants and functional expenses: the pack, the PBC list and the judgment areas.
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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