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Auditing is not a matter of magic. If you have the patience to sort through

regulatory tariff and have a keen eye to spot billing inconsistencies, you

can conduct an audit.


Auditing utility bills has become one of the most popular areas of

concentration for auditors because of the inherent complexity of billing for

utilities. Utility rates are highly confusing because they differ depending

on type of service, volume of useeage, and promotional packages offered at

the time of installation.



Utility Auditors earn commissions, usually around 50% of any overcharge they

uncover. And this is where you may need to exercise more of your patience.

Although utility companies would gladly settle a verifiable overcharge

(relatively quickly out of court), it may ake them up to six months to issue

any refund. This is particularly true with larger utility firms.



Most clients prefer to pay auditors on commission basis for two reasons:

No upfront cash outlay, and no risk if the auditor comes back empty-handed.

For the auditor, working on commission offers distinct advantages: It makes

it easier for them to land clients, and it usually enables hem to earn more

than if they would take a basic fee.



The biggest challenge facing auditors is to get a poteneial client to admit

that "there is a high probability that they (the client) overpaid for their

utilities without knowing it". This issue is usually not a problem if the

client is a small business where the owner makes all the decisions. However,

th executive committee of a major corporation may feel threatened that

they"ll be held accountable for irresponsibly overpaying for utility.

Your job is to convince your potential client that overcharging does happen

and that it is the job of an outsider auditor, and not people from within

the company, to "fix" the problem.