Industry Audit Expertise
Construction & Contractor Audit
Modus helps contractors get audits built for over-time revenue, WIP schedules, and surety needs.
A construction audit is really about the WIP schedule, and Modus helps middle-market contractors get theirs done at the speed of business. Over-time revenue recognition, estimated costs to complete, and job-level margins drive the financial statements, and sureties and lenders read those numbers closely. Modus brings top-firm rigor and AI-native speed to your construction audit, so you get source-linked support, fewer questions, and a bonding-ready result in weeks.
What is a construction audit?
A construction audit is an independent examination of a contractor’s financial statements under U.S. GAAP that results in an auditor’s opinion. It centers on how revenue is recognized over time under ASC 606, how the work-in-process schedule is built, and whether estimated costs to complete are reasonable. Because bonding capacity often depends on the audited results, the WIP and gross-margin story receives careful attention.
Who needs a construction audit?
- General contractors and subcontractors seeking or maintaining surety bonding.
- Specialty trade contractors with bank lines or covenant requirements.
- Heavy-civil and infrastructure builders reporting to lenders or owners.
- Contractors bidding on public or bonded work that requires audited financials.
- Family-owned or investor-backed firms preparing for transition or sale.
Key audit considerations for construction
- Percentage-of-completion and over-time revenue recognition under ASC 606.
- Work-in-process schedules, including estimated costs to complete and fade or gain analysis.
- Job costing accuracy and the allocation of indirect and equipment costs.
- Overbillings and underbillings and their effect on the balance sheet.
- Surety and lender needs, including working-capital and bonding-ratio covenants.
How Modus helps with your construction audit
Modus helps you get a construction audit that lands in time for bonding renewals and bank deadlines. Our AI-native platform ingests job-cost detail and the WIP schedule, ties every conclusion back to source contracts and change orders, and analyzes margin fade across every open job rather than a sample. That means fewer requests for your project accounting team and a result your surety and bank can trust.
Why choose Modus
- Top-firm audit quality at a middle-market price.
- Genuine expertise in WIP, ASC 606 over-time revenue, and job costing.
- A roughly four-week turnaround from a genuinely AI-native process.
- Source-linked support that backs up surety and lender reporting.
- Up to about 50% fewer questions for your project accounting team.
Frequently asked questions
Why does my surety want an audit instead of a review?
Sureties rely on audited financials to set bonding capacity because an audit gives the highest level of assurance over the WIP schedule and working capital. Getting a clean, timely audit often supports a stronger bonding program than a review would.
How does Modus support testing of the WIP schedule?
Modus ingests the full job-cost ledger and links contract values, costs incurred, and estimated costs to complete back to source, so margin trends across open jobs can be evaluated for fade or unusual gains across the whole schedule rather than a handful of jobs.
How long does a construction audit take?
Most engagements run about four weeks. Modus’s AI-native tooling automates the fieldwork, so getting your audit done aligns with bonding renewals and bank deadlines without overwhelming your team.
Why Modus
Audits at the speed of business
Modus helps you get a faster, higher-quality Construction & Contractor Audit — top-firm rigor, source-linked workpapers, and far fewer questions for your team.
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