What is Audit Period?

Definition

The audit period is the window of time during which a tenant may exercise their right to review a landlord's books and records relating to operating expenses. Most commercial leases specify a 12- to 24-month lookback period from the date the reconciliation statement is delivered. If the landlord fails to provide a timely reconciliation statement, some lease clauses extend or reset the audit window, creating open-ended exposure. The audit period is a critical risk management consideration for landlords — once the period expires, tenants generally lose the right to challenge that year's charges. Maintaining organized documentation and delivering timely statements is the best defense against audit risk.