A utility bill audit is a comprehensive review of an organization's utility invoices to include Electric, Gas, Water/Sewer and Waste invoices in order to track billing errors and evaluate rate plans to make suggestions for further savings. The Utility Expenses are generally Electricity, Water/Sewer, Natural Gas, Garbage, and Oil if used for Heating. Telephone Services are not usually considered a Utility Expense and are posted to a separate GL Account. Internet Services are generally considered the same as the Telephone. These Audits can be done in three ways:
1.Assurance to the Owners/Investors : The owners of the business will be assured about the accuracy of their books of accounts.
2.Errors and Frauds : Auditing helps us minimize the risks of errors and frauds in our books of accounts.
3.Independent Viewpoint : The business can get a second opinion on their financial statements and their financial standing.
4.Moral Check : One of the other advantages of auditing is that the staff and the workers of the company do not try to steal or defraud the company.
5.Stakeholders Confidence : After auditing by an independent authority, the financial statements have more credibility.