Audit Checklist
Office Inspection Suggestions
- Balance escrow account checkbook as soon as possible after the receipt of each statement.
- Tape canceled checks back into the checkbook adjacent to the stub so you will have a complete record of the check and not have to search statement envelopes for the check in question.
- Prepare a continuous list of pending contracts with the amount of earnest money involved. Mark off each transaction as it closes, the money is refunded, or it is forfeited by purchaser or seller.
- If the bank imposes a service charge, the charge should be deducted from the account before the remainder of the commission is removed to prevent overdraft charges. The Commission has ruled that additional designated funds may be deposited into the account to cover bad checks, service charges, etc.
- Keep all pending contracts separate from closed contracts.
- Maintain a separate escrow account for rental or leased property to distinguish it from sales contracts which do not have repairs, owner’s payments, etc.
- Keep written receipts for all funds received, whether by cash or check, as a means of internal control.
