Property enterprise audit key tips

I. Audit objectives and audit risks of property service companies

The income sources of property service companies include property management income, service
income such as utilities fee and gas fee collected and refunded/resold, rental fee of public facilities,
property overhaul income, etc. Due to the variety of revenue types and wide range of services provided
by property service companies, it is particularly important to check the authenticity, integrity and
compliance of revenue recognition. In the audit, the following internal control and audit risks should be
mainly concerned:

(I) The timeliness and rationality of property fee collection

The charging standard of property fee is specified in the property service agreement signed by the
owner before the occupancy, and is charged according to a certain period.

The establishment of effective management system of property fee collection is very important to
ensure the business income of property service companies. At the same time, for the collection of
vacant housing property fees and owners with new property fees exemption and other special
circumstances, the property service company should be in advance with the owners to agree on the
collection of standards and methods, and timely reconciliation of the collection.

Under normal circumstances, the charging standard of property fees for the same types of business
(such as residential, office, commercial) should be consistent. However, the author believes that
different areas, different floors of the allocation of public service costs or should be different, for
example, high-rise allocation of green fee standards is moderate decline? Or the lower level of the
apportionment of the elevator fee is moderate decline? Certified public accountants should pay proper
attention to whether there is insufficient collection of property fees and the reasons.

(2) The integrity of the accounting of business income

Parking fees, advertising, venue rental and other business income business opportunities, large
operational space, there is a risk of integrity confirmation.

Public indoor garage is divided into monthly and temporary two categories, public outdoor parking is
also divided into monthly and temporary two categories, are priced by the government, monthly parking
service agreement should be signed, public temporary parking space change is large flexibility is also
large, and often for meetings or accommodation personnel vehicles free parking coupons, so temporary
parking fees are the most prone to fraud, so, if the intelligent parking, Electronic lever lifting system,
there should be no individual start electronic lever lifting personnel, if the manual control must be
established vehicle entry and exit registration, vehicle entry and exit time contact list system, at the
same time, the accounting should be a separate accounting of public temporary parking fees.

The property service company shall sign a temporary venue rental agreement when temporarily renting
public sports venues, sports facilities and public venues to outside personnel for marketing, operation
and exercise activities.
The rent income of temporary mobile houses and idle warehouses in the community is also prone to
fraud and private rental fees. The housing rental contract should also be signed, otherwise there may be
income integrity risk.

(3) The accuracy and standardization of the fees collected on behalf of the authorities

The revenue and expenditure items collected and paid/resold by the property service company mainly
include water, electricity, cable TV, heating and gas fees, etc. The property service company shall issue
formal invoices (at the time of resale) or receipts to the owners, complete the information of the payer
and the payer, room number, payment content, payment period, payment amount and so on, stamp the
financial seal and leave a record.

(IV) The rationality of labor and outsourcing labor costs

The cost of the property service company includes labor cost, outsourcing service fee, collection and
payment, office fee, maintenance fee of public equipment and facilities, green cleaning fee, etc., which
mainly has the risk of falsely increasing the number of people and exaggerating the cost.

(V) Authenticity of material procurement

Material procurement mainly includes equipment, tools and maintenance materials required for
property services, etc., which may lead to the risks of over-frequency of material procurement, inflated
price and excessive cost consumption.

Two, property service company audit content and focus

Audit content: To check the establishment and improvement of the management system of the property
service company, which includes: Property fee collection management system, vehicle management
system, decoration management system, cleaning management system, security inspection system,
janitor management system, property leasing business management system, financial management
system, material purchase management system, personnel supervision and assessment system, safety
management system, construction waste disposal methods, owner complaints handling methods and
other internal control rules and regulations.

Check the setting of the financial accounts of the property service company, whether to set up "all
owners" and "part owners" accounts, and make separate accounting of the owners' public income
according to income items; Check whether the income from property fees, parking fees, public facility
rental fees, media advertising fees and bottom shop rental fees are complete and accurate; Check
material procurement, payment of wages and benefits, maintenance project audit procedures are
standardized, the allocation of public water and electricity costs is reasonable; Check whether the use
scope of maintenance fund exceeds the prescribed standards, whether the approval of maintenance
fund use is complete (property service company internal approval, industry authority approval), whether
there is illegal use when idle, whether the use of special circumstances meet the regulations, whether
the maintenance fund revenue and expenditure records are complete and timely, verify the authenticity
and integrity of the revenue and expenditure of the property service company.
Audit focus: integrity of temporary rental income of public sports venues, sports facilities and public
venues, temporary parking fee income, temporary mobile housing and idle warehouse in the
community. At present, most of the residential owners' utilities and gas fees are paid directly with the
water company and the power supply company, and the property overhaul income generally has a long
interval and does not happen often. Therefore, the property overhaul income and collection and
payment commission income are simple.

Iii. Audit procedures and methods of property service companies

Inquire and observe the system compliance of the property service company, and check whether the
property fee collection and assessment system, vehicle entry and exit registration and entry and exit
time contact list system, property leasing business management system, electronic lever key control and
other internal controls and rules and regulations of the property service company have been
implemented.

Using the trend analysis method, the amount of all kinds of income, cost and expense items in the
current year is compared with the previous year, based on the analysis of the changes, for obvious and
abnormal changes in the project to further identify the reasons, to verify whether there are omissions,
concealment or false problems.

Implement substantive procedures to address weaknesses in understanding and analysis.

(I) property fees

First, the analysis of the current year and the previous year property fee changes. The property fee is
fixed, is calculated according to the occupancy area times the unit area, the annual property fee should
be basically stable, little change, analysis of whether the property fee is charged and the property area
and fee standard match, if there is a big difference to pay special attention to find out the reason.

Secondly, ask for the summary of the occupancy area and the owner of the occupancy list, check
whether to get the key, understand the property deposit or decoration deposit collection, return
situation, to determine whether to check in.

Thirdly, ask for the basis and standard of property fee collection and the conditions for enjoying
preferential policies, check the property service company's receiptable list of property management fee
collected, the list of property fee waived and the list of monthly property management fee income,
understand the reasons for deferring or reducing property fee of owners, and ask what collection means
and collection assessment and incentive methods are available. To determine the possibility of bad
debts arising from property expenses.

Third, pay attention to empty houses or undelivered real estate, select part of the real estate, field visit
to observe whether the owners have not registered or rented.

Fourth, obtain the garbage removal freight charge schedule, check whether it is consistent with the
property management fee schedule.

Fifth, check the continuity of the property charge bill number, spot check the last few invoices to see
whether timely entry.
Finally, check whether the property fee ledger is set up, whether the parking fee income is directly
recorded into the property fee income.

(2) Parking fees

First of all, on-site interview with the management of the property service company is required to
understand the business operation process of parking fee management, focusing on the temporary
parking registration and charging process and management system.

Secondly, obtain the distribution map of indoor parking space, underground parking space and outdoor
temporary parking space, respectively understand the total number of indoor parking space,
underground parking space and outdoor temporary parking space, the number of monthly paid and
vacant parking space, and master the overall size of parking space. Meanwhile, pay attention to the
number of parking space and monthly paid owners. In particular, the number of temporary parking
Spaces in the open air and the number of temporary parking Spaces change every month, and the
number of temporary parking Spaces will change every day. Therefore, it is difficult to master the
temporary parking Spaces, especially the dynamic parking amount.

Thirdly, ask for monthly vehicle schedule, monthly summary of temporary parking vehicle charges, daily
report of temporary parking vehicle charges, check the daily report of temporary parking and monthly
summary of temporary parking to check whether the summary calculation is correct and there are no
omissions. Meanwhile, Check the monthly schedule of paid vehicles, monthly summary schedule of
charges for temporary parking vehicles and daily report of fees for temporary parking vehicles with the
distribution diagram of indoor parking Spaces, underground parking Spaces and outdoor temporary
parking Spaces to check the utilization rate and vacancy rate of parking Spaces. If the number of report
is less than the number of temporary parking Spaces, it indicates that the parking space in the
community is vacant; If the number of the report is greater than the number of temporary parking
Spaces, it indicates that there are too many external vehicles, and the community has crowded roads
and public places. Interview the owner on site and ask whether it is consistent.

Fourthly, the vehicle information list generated by the access control IC card system corresponds to
whether the vehicle with monthly payment is the owner of the community. Observe the parking vehicles
in the underground monthly parking lot on the spot, check whether there are temporary vehicles
without monthly monthly payment and whether there are temporary parking Spaces for mothers and
children that are different from the drawings according to the monthly monthly vehicle schedule and
the underground parking map. Check the monthly vehicle schedule, monthly service agreement and
business ledger. Check whether the underground parking space is vacant, the monthly parking fee is
waived or the fee is collected privately for the monthly vehicle schedule. Check receipts of POS system
by spot check and check with monthly vehicle registration form or monthly vehicle details form to check
the accuracy, completeness and timeliness of monthly vehicle fee entry.

Fifth, check temporary parking vehicle charges. The way of manual charge, spot check security vehicle
registration form, check the daily report of temporary parking, check whether the daily report is missing,
check the security bill and the vehicle registration form, the vehicle in and out of the time contact sheet,
how much difference? To find out the reason, at the same time spot check whether the bills are
consecutively numbered, whether the bills are printed without authorization. Adopt the intelligent
parking electronic toll collection system, or observe the temporary parking traffic flow at the electronic
lever lifting place, check whether there are system failures, long-term blind spots and temporary
emergency treatment methods, spot check wechat or Alipay cash collection daily report and the
monitoring room on the day of the vehicle to check whether it is consistent, spot check electronic lever
lifting frequency and time are consistent with the temporary parking daily report, There are no
omissions. It is an effective method to carry out walking test, observe the vehicle flow in and out,
estimate the daily temporary parking income and check with the daily temporary parking report.
Attention should be paid to the control of the requisition, registration and numbering of free parking
coupons, such as procurement, sealing, issuance, recovery and retention. Whether temporary parking
fees are transferred to private accounts, whether there are private charges and income withheld.

Finally, check whether the property service company has set up an account "owned by all owners", and
calculates temporary parking fees separately or transfers them into the public maintenance fund
account. Check whether temporary parking fees are timely and accurately recorded in the account
according to the monthly vehicle schedule and monthly summary schedule of temporary parking fees,
and check whether temporary parking fee income is recorded into the monthly income.

(3) Media advertising revenue

First of all, to the property service company to obtain the media advertising registration form, check
whether through the audit access, whether to sign the public space or building advertising agreement.
Ask the owners' committee and the building for information on the distribution, type and amount of
media advertising. At the same time, visit the community to observe whether there are public
billboards, wall billboards and pole billboards, as well as stairs advertising plaque, electronic display
review, the above observed advertising distribution, type and quantity and property service company
media advertising registration form, check whether there are unregistered advertising. Especially pay
attention to the stairs advertising plaque, electronic display is often short-term, often change and
diversity, check whether there are omissions. If the property service company does not have the
registration form of media advertising, the advertisement income of the community in a certain period
is preliminarily estimated by observing the distribution and quantity of advertisement.

Secondly, ask the owners' committee or some owners to know whether the community has carried out
promotional activities such as milk, health products, food, furniture and appliances, decoration and so
on in the community, and check whether the property service company is allowed to review, and
whether it is invoicing.

Thirdly, according to the same or similar market price, ask the owners' committee or some owners to
calculate the advertising income of the community in a certain period.

Finally, check whether the property service company has set up "all owners", "partial owners (for
example, Building 11 or Building 9)" ledger or transferred to the public maintenance fund account,
whether the media advertising revenue is invoiced into the account, whether the short-term advertising
or temporary marketing access income is transferred to the private account. Compare the calculated
residential advertising income with the media advertising income book of the property service company
to check whether the property service company has omitted, underrecorded or not recorded. Check
whether the property service company has incorporated the media advertising income of public venues
into the leasing income accounting.
(4) Bottom shop and rental income of commercial housing.

First of all, check the residential commercial house rental management system, idle room registration,
key storage, lease contract signing, rental fee collection incompatible duties are separated.

Secondly, ask for the floor plan and the house use status table of the community, and obtain the
property ownership certificate of the bottom shop and commercial house. Then check the number and
area of the bottom shop commercial house and check the floor plan and the house use status table.
Divide the property service company's commercial housing and community's public housing to check
whether it has been rented or changed (for example, rent-out, sublease, new lease), not marked on the
floor plan and the house condition table.

Thirdly, obtain the list of the bottom shop and commercial house, check the signing of the bottom shop
and commercial house rental contract, whether the responsibilities and obligations are clear, whether
the fee is clear, whether it is consistent with the list of the bottom shop and commercial house, whether
the rent is reduced or not, and ask the reasons. Check whether there are rented bottom shops and
commercial houses that are not registered in the list of bottom shops and commercial houses by
referring to the floor plan and the house use condition table and the site inspection.

Fourth, combined with the previous property fee audit, check whether there are vacant houses in the
community, observe on the spot whether the vacant and unsold houses have been rented out, whether
the rental income has been transferred to a private account, whether it is recorded in the rental income
ledger of the property service company.

Fifth, compare the nearby location and price, ask relevant personnel, and make a judgment on the
authenticity, rationality and efficiency of the rental fee.

Finally, check the billing situation of the rental fee, whether it is consistent with the lease contract,
whether the name of the merchant under the lease contract, the bank account for collecting funds, and
the title of the lease invoice are consistent, and whether there is any sublease or transfer of rental
income into private accounts. Whether there are omissions, undernotes or omissions in the rental of
bottom shops and commercial houses, whether there are transfers to private accounts and private
rental charges, evaluate and check the possibility of returning the rental of bottom shops and
commercial houses. Check whether the property service company rents the public management and
activity houses, records the public maintenance fund into the property service company's account, and
whether the rental income of vacant houses is mixed into the property fee income calculation.

(5) Income from property overhaul. Property overhaul income refers to the income obtained from the
overhaul of common parts of the house (such as elevators, public roads and venues) and common
facilities and equipment (such as mechanical and electrical equipment, roof water tower) by property
service companies entrusted by owners' committees or property owners and users. Property overhaul
income audit, first check whether the property overhaul by the owners committee or property owners,
users signed and approved, to avoid false maintenance situation. Secondly, it is combined with material
procurement and maintenance cost audit to check the authenticity of procurement expenditure and
maintenance cost. Again, through visiting the project contractor, to understand whether there is
unreasonable demand for fees in the link of project and investment.
Through the above auditing procedures and methods, check whether the above income items of the
property service company are timely, complete and standardized, whether the public benefits of the
community are divided, and whether there are cut-off and overhaul income.

(6) Collect and pay water and electricity charges and gas charges on behalf of the government

Water and electricity fees, gas fees are different. Some areas are collected and paid by the property
service company, while some areas are deducted directly by the owners. The former method is no
longer mainstream, and the latter does not involve auditing, so it is briefly described. First of all, clear all
kinds of business charge standards, water, electricity and gas public area of the distinction mark, divide
the owner and public area of water, electricity and gas, analyze whether the water and electricity charge
and division is reasonable, check whether there are flying lines, private installation of water pipes and
other phenomena.

Second, check the allocation of utility bills. There is some difficulty in sharing water and electricity bills.
In most cases, the total amount of apportion is determined first. The property service company
generally does not apportion the amount of VAT ticket or deduction by the water company or the power
supply company, but the cost markup. The property service company generally earns the difference or
charges a commission for apportion according to the area.

Thirdly, the property service company will generally issue to the owners of water, electricity and gas
public charges and owners cost burden division sheet, publicizing the income and expenditure of water,
electricity and gas, but the property service company generally will not issue invoices to the owners, so
it is necessary to pay attention to the authenticity of the bills, compliance, obtain auxiliary evidence, to
verify whether the relevant documents are complete, whether the evidence chain is formed. Whether
there is any basis for apportionment calculation, whether it is reasonable, and whether it is consistent
with public standards to prevent fictitious business.

(7) Labor cost

In general, in addition to property management personnel and security, basic work, such as cleaning and
greening services, is outsourced to labor dispatch companies or domestic service companies. Therefore,
labor costs actually include employee wages and benefits and labor expenses.

First of all, obtain the staff roster of property service companies, ask whether management personnel
and security personnel have relevant knowledge and qualifications, analyze the rationality of the
company's personnel structure, and pay attention to the performance ability of employees. Secondly,
check the details of salary payment for several months, check with the staff roster and attendance
record, check whether the number of people is consistent, whether the salary is calculated according to
the attendance record, whether there is cash payment, and check and approval process of cash
payment, so as to prevent the property service company from increasing labor costs by artificially
increasing the number of people in cleaning, greening and maintenance. Thirdly, random check of
several months 'dimssion approval forms, and check the salary payment records of relevant months,
whether there is any situation that the departed personnel continue to pay salaries. Fourth, check
whether the number of guards and security guards on duty is consistent with the roster of employees,
and check whether there are "empty rates", false claims and false claims. Fifth, check whether there is
any basis for the authorization of employee welfare, especially clothing expenses, and whether there is
any phenomenon of expanding the distribution scope of uniform clothing. Finally, for the outsourcing of
basic services, pay attention to the selection of labor outsourcing units and service items and categories,
and examine whether the agreement on the cost standard of labor outsourcing is reasonable.

(8) Expenditures of maintenance funds in custody

First of all, check whether the residential property service company has formulated the "residential
property company maintenance fund management Measures", "property management maintenance
fund use and management measures" and other internal control systems, to make provisions on the
scope of use of the maintenance fund, collection standards, collection procedures and use procedures,
whether to set up a special account management maintenance fund, whether there is a phenomenon of
embezzlement.

Secondly, check whether the use of the maintenance fund is in line with the scope of use, check the
voting results or resolutions of the use of maintenance funds, meeting minutes, check whether the
overhaul and middle repair is approved by the owners committee, and whether the body maintenance is
approved by the building owners.

Again, check the maintenance project content, related drawings, budget information, construction
contractor qualification. Check maintenance contracts for parking lots, elevators, insurance, water
supply, power supply and air conditioning, and understand the details of related expenses. Review
minor maintenance works, verify quantities and materials used in connection with construction
contracts and project statements.

Finally, check whether the maintenance project has the construction project list, maintenance
assignment and the original evidence of the maintenance fund expenditure of the building body, and
verify the authenticity and rationality of the maintenance fund project expenditure.

(9) current accounts.

The main accounts of the property service company are: receivables received in advance, other
receivables, project payables and other payables. These three accounts, often without accurate detailed
accounts, are scattered small retail investors. Other payables are mainly a variety of collections,
common public maintenance funds, decoration deposits, garbage disposal fees and so on. Garbage
disposal fees are divided into three categories: urban household garbage disposal fees, green garbage
disposal fees, and soil garbage removal fees, which are generally collected by households on behalf of
the city administration or the environmental sanitation department. The green garbage disposal fee is
generally collected by the property service company according to the area of the household during the
decoration, and transferred to the labor fee of the outsourcing company. These fees are often attached
to the account of other payable payments, and the balance is increasing. This requires attention to the
property service companies and outsourcing labor companies signed service agreement and pay
garbage disposal fees.

(x) Materials procurement and maintenance materials

First of all, pay attention to the large number of frequent purchases of non-consumable goods (such as
work clothes, walkie-talkies, etc.), select items with large amounts of money for market inquiry
comparison, obtain the list of suppliers, and understand the abnormal purchasing situation.
Secondly, random extraction plate equipment, greening, cleaning, engineering maintenance materials,
including maintenance and replacement of materials and materials for daily office use. Then, check the
situation of the material pumping tray with the warehouse account and the financial book to see if there
are damaged, unreported and unused equipment and materials. If the number of pumping trays is larger
than the financial book, check whether there are purchased equipment and materials that are not
recorded in the account. If the number of pumping plates is smaller than the financial books, it is
necessary to know the whereabouts of the waste equipment and materials sales revenue, check
whether the equipment and materials are properly disposed of, and whether the accounting is correct.

Finally, the procurement of maintenance materials is reviewed, and the corresponding material
consumption, cost price and consumption structure are calculated based on the amount of engineering
maintenance in a certain period. Random check of minor maintenance requisition for complete reasons
and purposes. Select maintenance materials with large amount of money for market inquiry
comparison, check the storage records of maintenance materials, check whether they are consistent
with the material consumption, cost and price calculation, and find out the reasons for the differences.
Do a return visit of maintenance quality service to find out if maintenance fee is charged.

(11) Underground warehouses

Observe the underground warehouse according to the underground warehouse distribution map, check
whether there is temporary construction, know whether there is temporary warehouse or compartment
and the actual rental situation, check whether there is underground warehouse rental income into
private accounts, private rental fees are not recorded, to ensure that the integrity of the income does
not leave dead corners.

(12) Security and reception services

Check to see if the doorman checks in and out. Check the security daily patrol record sheet, whether
there are patrol dates written in advance and signature. Or not recorded. Check the fire prevention and
anti-theft facilities of the community, whether the monitoring equipment is complete, and ask whether
the safety and effectiveness of the fire prevention facilities and anti-theft monitoring equipment are
checked regularly, whether the street lamps and corridor lights are intact, whether the fire access is
smooth, whether the fire protection facilities are intact, whether the fire prevention knowledge is
publicized to the owners of the community regularly, whether the fire prevention drill is conducted
regularly. Check whether the community has set up a reception hotline for residents, whether it has
established a Reception Record Form for owners, to deal with owners' visits and complaints, whether it
timely visits and replies to solve the problems of fire security, health, dog raising, noise and other
aspects of the community, whether it takes the initiative to mediate and deal with public affairs, civil
disputes and emergencies in the community.