Glossary
Legal & Compliance
Audit Rights
A lease provision granting tenants the contractual right to inspect, review, and verify a landlord's CAM records and reconciliation calculations. Audit rights define the timeframe and procedure for initiating a CAM audit.
Firm impact
Your firm's CAM audit engagement is anchored in the client's audit rights clause. Confirm the window length, notice requirements, and record-production obligations before you begin. A missed window can bar the entire recovery.
How this gets abused
A lease specified a 60-day audit window. The landlord delivered the reconciliation on December 26, during the holiday period. The tenant missed the January 24 deadline. The landlord subsequently invoked the binding-and-conclusive clause to block a $45,000 overcharge dispute.
Practitioner note
Check whether the lease requires the audit be conducted by a CPA. Some clauses restrict audit rights to CPA firms. When your firm qualifies under this restriction, it is a direct marketing advantage: only a CPA can perform the audit the lease permits.
Related terms
FAQ
Questions about audit rights
Can my firm initiate a CAM audit on behalf of a client?
Yes. Prepare the audit notice package against the lease notice provisions on behalf of the client. Some leases specify who can conduct the audit (CPA, independent accountant). Confirm the authorization language before you begin.
How quickly can CAMAudit return findings so we can meet the audit deadline?
CAMAudit reads the lease and CAM bill. Your firm can review the flags and prepare the dispute letter draft. Your team signs off before it goes to the client.
You know the term. Now check the math.
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