How do I conduct an overhead cost audit?

How do I conduct an overhead cost audit?

To conduct an overhead cost audit, start by gathering all relevant financial documents and identifying overhead costs.

What specific documents do I need for the audit?

You'll need financial statements, invoices, payroll records, and any other documents related to indirect costs.

How do I analyze the overhead costs once I have the documents?

Analyze the costs by categorizing them, comparing them to industry benchmarks, and identifying any discrepancies.

What should I do if I find discrepancies in the costs?

If you find discrepancies, investigate the causes, adjust your records if necessary, and implement controls to prevent future issues.