What documentation is crucial for a property management audit?

The correct answer focuses on the critical documentation necessary for a property management audit, specifically lease agreements, maintenance records, and financial statements. Each of these documents plays a vital role in evaluating the performance and compliance of property management activities.

Lease agreements are essential as they define the terms of rental contracts between landlords and tenants, including rental amounts, duration, and any special conditions. During an audit, reviewing these agreements ensures that all aspects of the lease are being adhered to, and helps verify income from rental properties.

Maintenance records are equally important as they document all repairs and maintenance activities conducted on the property. This information is crucial for assessing how well the property is being maintained, ensuring tenant satisfaction, and managing property value. An audit will look for proper maintenance processes and the associated costs to ensure transparency and accountability in property management.

Financial statements provide an overview of the property's financial health, detailing income, expenses, and profitability. These statements help auditors review cash flow and assess whether the property management is effectively managing funds, staying within budget, and meeting financial goals.

Other documentation options, while relevant in certain contexts, do not provide the same level of detail and accountability needed for a comprehensive audit. Utility bills and bank statements are useful but do not cover operational aspects directly related to