WIP, job costing & surety-ready reporting
Construction company audit services
CPA audited financial statements for surety bonding, lenders, and public projects. Built around how contractors actually earn revenue, by project and over time.
1,331+
Verified client reviews
16+
Years auditing experience
AICPA
Peer-reviewed firm
50
States served nationwide
What a construction audit is
A construction company audit is an independent examination of your financial statements by a licensed CPA firm, built around how contractors actually earn revenue, which is by project and over time.
Contractors get one to satisfy a surety, a lender, or a public owner. Audited statements carry more weight than internally prepared or compiled numbers because a third party has tested them.
Why choose Dimov Audit
Why contractors trust Dimov Audit
Audit-only focus, construction-specific expertise across WIP, job costing, and surety schedules, and nationwide reach.
500+
audits completed
14+
years average audit and tax experience per staff member
AICPA
peer reviewed
50
states served, nationwide coverage
When you need a construction audit
When you need a construction audit
You usually need audited financials when a third party requires assurance about your numbers. The most common triggers:
- Surety bond capacity of roughly $2 million or more, or a bonding program that is growing.
- Bank debt or a credit line in the range of $5 million to $10 million, where the lender sets a covenant.
- Government or public works projects, where the owner or the Miller Act requires bonded, audited contractors.
- State contract thresholds. Some states set the assurance level by contract size (for example, Florida FDOT requires a review up to $2 million and an audit above it).
Compilation, review, or audit
Compilation, review, or audit
The right level of assurance depends on what your surety or lender will accept.
Compilation
The lowest level. We assemble your statements with no assurance. Suitable for the smallest contractors and internal use.
Review
Limited assurance through inquiry and analytics. Often enough for mid size firms and smaller bond programs.
Audit
The highest level. Full testing and an opinion. Required for larger bond programs, most public work, and many lenders.
What we examine
What we examine in a construction audit
Construction audits turn on a handful of areas that a general audit does not reach. We test each one.
WIP schedule and cost to complete
We tie your work in progress schedule to the general ledger and test percent complete, estimated cost to complete, and reported margin on sampled jobs.
Percentage of completion
We confirm revenue is recognized as work progresses and that your method holds up under the current revenue standard (ASC 606).
Over and under billings, profit fade
We compare billing against cost and earnings and flag profit fade or job borrow that can signal cash or estimating problems.
Job cost allocation
We verify that labor, materials, subcontractors, and equipment are booked to the correct jobs.
Change orders and contracts
We trace change orders and contract terms so approved scope and pricing match what is recorded.
Davis-Bacon and certified payroll
On federally funded and public works projects, contractors must pay prevailing wages under the Davis-Bacon Act and file certified payroll. We test wage determinations, worker classifications, and certified payroll reporting.
Internal controls and procurement
We assess controls over bidding, procurement, and billing to reduce fraud risk and cost overruns.
Bonding and surety schedules
We prepare the schedules your surety expects, in the format they read first.
How it works
How a construction audit works
- 01Step 1
Planning and scoping
We agree on the engagement, the reporting framework, and the deadline your surety or lender is working to.
- 02Step 2
Sample projects from the WIP
We select jobs to test, often by size, type, or risk.
- 03Step 3
Test job costs and billings
We check costs, billings, and margin on the sampled jobs against supporting records.
- 04Step 4
Interview project managers
We speak with the PMs on sampled jobs to understand estimates, change orders, and any underbid.
- 05Step 5
Confirm subs, vendors, and change orders
We verify amounts with third parties where needed.
- 06Step 6
Issue the opinion and management letter
You receive the audited statements and a letter noting any control improvements.
How to prepare
How to prepare for a construction audit
Preparation is the difference between a smooth audit and a slow one. Before we start, get these in order.
- Reconcile your financial statements so the balance sheet, income statement, and cash flow all tie out.
- Align your WIP schedule with the general ledger so job costs match.
- Organize contract files and change orders so support is easy to find.
- Review your estimating, billing, and cost tracking for consistency.
- Convert cash basis records to accrual and GAAP where required. Audited statements need GAAP, including percentage of completion.
- Document your revenue recognition policy and any capitalization thresholds.
Scoping
What a construction audit costs
Cost depends on the size and complexity of your business.
These are typical ranges, not a quote. The actual fee depends on your revenue, entity structure, project mix, the type of audit, and the condition of your records. We can only give an accurate price once we understand the scope of your engagement. Request a scoped quote and we will price it against your specifics.
How audited financials raise your bonding capacity
For most contractors, the audit pays for itself in bonding.
Sureties read your WIP schedule before any other document. Clean, GAAP based statements with proper job costing and percentage of completion tell a stronger story than cash basis numbers.
Moving to audited financials can improve the ratios a surety underwrites against, which can raise your single job and aggregate bonding limits.
Higher bonding capacity means you can bid larger work. That is the return on the engagement.
Why us
Why contractors choose Dimov Audit
Audit only focus
Dimov Audit only does audit work. That focus keeps us efficient and often more cost effective than firms that spread across every service.
Construction experience
We work with contractors on WIP, job costing, and surety schedules, not just generic financials.
AICPA peer reviewed
Our work is independently reviewed to professional standards.
Fast turnaround, nationwide
We serve clients across all 50 states and work to your bonding and lender deadlines.
Related audit services
Related audit services
If a different level or type of audit fits your situation, we cover those too.
Talk to a construction auditor
Tell us about your projects, your bonding needs, and your deadline.
We will scope the engagement and give you a clear quote. Handled directly by a professional.
Contact
Connect with Dimov Audit
Our dedicated team is ready to assist you on your path to financial success.
24 Mercer St, 2nd Floor, Suite 214
New York, NY 10013
United States
Frequently Asked Questions
Reviewed by George Dimov, CPA. Founder of Dimov Audit, the firm behind 500+ audit and attestation engagements across all 50 states.
Are your financials audit-ready?
Are Your Financials Audit-Ready?
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