PROJECT COST ACCOUNTING & JOB COSTING AUDIT CHECKLIST 2026

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--- PROJECT SETUP & MASTER DATA VERIFICATION ---
[ ] Project Code/ID
[ ] Project Start Date
[ ] Cost Center Assignment (Operations, Manufacturing, R&D, Service/Maintenance)
[ ] Approved Initial Budget
[ ] Signed Project Charter/Contract
[ ] Required Accounting Permissions (Accounts Payable Access, Accounts Receivable Access, Budget Modification Rights, Time Tracking Authorization)
[ ] Project Controller Approval

--- DIRECT LABOR COST ALLOCATION AUDIT ---
[ ] Audit Period Start Date
[ ] Audit Period End Date
[ ] Labor Category Under Review (Skilled Labor, Unskilled Labor, Supervisory/Management, Contract/Subcontracted Labor)
[ ] Total Labor Hours Audited
[ ] Discrepancy Notes & Variance Explanations
[ ] Timesheet/Payroll Records Upload
[ ] Auditor Verification Signature

--- MATERIAL & SUBCONTRACTOR COST VERIFICATION ---
[ ] Verified Document Types (Purchase Order, Receiving Report/BOL, Subcontractor Invoice, Lien Waiver, Certificate of Insurance)
[ ] Total Material Cost Verified
[ ] Discrepancy Notes
[ ] Date of Verification
[ ] Upload Supporting Invoice/PO
[ ] Auditor Approval Signature

--- INDIRECT COST & OVERHEAD ALLOCATION REVIEW ---
[ ] Overhead Allocation Rate (%)
[ ] Allocation Method Used (Percentage of Direct Labor, Percentage of Direct Materials, Fixed Dollar Amount, Machine Hour Basis)
[ ] Variance Explanation
[ ] Overhead Calculation Worksheet
[ ] Review Completion Date
[ ] Controller Approval

--- REVENUE RECOGNITION & PERCENTAGE OF COMPLETION (POC) AUDIT ---
[ ] Revenue Recognition Period End Date
[ ] Total Estimated Project Cost
[ ] Total Costs Incurred to Date
[ ] Calculated Percentage of Completion (%)
[ ] Revenue Recognition Method Used (Percentage of Completion (Cost-to-Cost), Completed Contract Method, Fixed Price / Milestone Based)
[ ] Variance Explanation for POC Deviations
[ ] Supporting Project Progress Report
[ ] Controller/Project Accountant Approval

--- BUDGET VS. ACTUAL (BVA) VARIANCE ANALYSIS ---
[ ] Audit Review Date
[ ] Project Name/ID
[ ] Total Budgeted Amount
[ ] Total Actual Expenditure
[ ] Variance Amount
[ ] Variance Severity Level (Low (Within 5%), Medium (5-15%), High (>15%))
[ ] Root Cause Analysis of Variance
[ ] Supporting Variance Documentation
[ ] Project Controller Approval

--- WORK-IN-PROGRESS (WIP) SCHEDULE RECONCILIATION ---
[ ] WIP Report Period End Date
[ ] Total WIP Value Identified
[ ] Reconciliation Status (Fully Reconciled, Discrepancies Found, Pending Investigation)
[ ] Description of Unreconciled Variances
[ ] Supporting WIP Ledger/Schedule
[ ] Controller Approval Signature

--- CHANGE ORDER & CONTRACT AMENDMENT TRACKING ---
[ ] Change Order Date
[ ] Change Order Reference Number
[ ] Description of Scope Change
[ ] Additional Cost Impact
[ ] Impact Status (Budget Increase, Budget Decrease, Timeline Extension Only, No Budget Impact)
[ ] Signed Amendment Document
[ ] Project Manager Approval

--- PROJECT CLOSEOUT & FINAL COST RECONCILIATION ---
[ ] Project Completion Date
[ ] Final Project Manager Name
[ ] Total Final Project Cost
[ ] Final Budget Variance Status (Under Budget, On Budget, Over Budget)
[ ] Closeout Tasks Completed (All vendor invoices paid, Subcontractor lien waivers collected, All purchase orders closed, Final revenue recognized, Post-mortem meeting completed)
[ ] Final Variance Explanation/Notes
[ ] Final Project Financial Summary Report
[ ] Project Controller Approval

--- COMPLIANCE & DOCUMENTATION AUDIT TRAIL ---
[ ] Required Documentation Verified (Signed Master Service Agreement (MSA), Approved Change Order Documentation, Subcontractor Insurance Certificates, Lien Waivers & Releases, Project-Specific Permit Approvals)
[ ] Date of Final Audit Completion
[ ] Upload Final Project Audit Report
[ ] Audit Findings & Discrepancy Notes
[ ] Auditor Affirmation

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