Businesses in contemporary economies fail because of inadequate internal control. Internal control comprises of all net processes initiated by an organization’s management, board of directors and other personnel that is geared towards providing reasonable achievement of the firm’s goals and objectives. Internal controls make up the primary defensive function in fraud and violations of laws, regulations and provisions of contracts and agreements. When a company has a performing internal control, it enjoys:
• Protected assets and lower risk of fraud
• Efficient operations
• Ample compliance with laws and regulations
• Financial integrity and reliability
A firm should have a clearly defined system of internal control and an even clearer established chain of command. The management of a company should be the heaviest burden of internal control. Though oversight boards often have the final say in matters pertaining to company welfare, they only play oversight roles and have no real control over how things are run. They may only convene to dissolve management in case of a collapse in internal control or to applaud the management in cases of efficiency in internal control.
An auditor is a trained official who performs the function of verifying the accuracy of business transactions and consequent records. They weigh financial procedures and make sure those companies and likewise entities are run competently. Their work is to trail cash flows of organizations from the very start to the end. They affirm that an organization’s funds are accounted for properly.
Internal auditors assess the risks in a firm’s internal control and their potential impact on the firms. They evaluate controls and suggest policies that need implementation by the institution to mitigate those risks. They are different from external auditors because their activities are geared towards helping improve internal controls of a firm. External auditors probe into a firm and present their findings and opinions to shareholders or statutory bodies. They do not care what consequence their findings have on the company, unlike internal audits which are conducted solely for the purpose of bettering management and mitigating risks of malpractice.
Most external auditors are contracted from accounting firms. Accounting firms have since the year 2013 been hiring chartered accountants to perform very many functions. A Chartered accountant can literary act as a Public Accountant in numerous countries. They seem to be winning a majority of elite internal and external audit jobs since the Chartered Accountants Program was launched in 2013.
There seems to be no shortage of commercial property for sale. The trick is to find the best investments for the money. Real estate agents are great at negotiating a sale, but the use of commercial real estate consulting services can take you a step closer to huge success in your investment portfolio. Below are a few of the ways an experienced consultant can help you score the best deals available.
Pulse on the Economy
The commercial real estate market is often driven by the overall health of the economy in the area an investor plans to purchase. A spiral down in the costs of fuel has added a burden to the market in the sense that some areas are experiencing less job growth. This leads to a smaller pool of investors and commercial properties that sit idle for longer periods of time. World events such as wars and terrorism can also have an impact, although it is felt less than localized governmental and economic issues.
Knowing Current Commercial Real Estate Trends
Many investors wished they had utilized quality commercial real estate consultants ahead of the world economic downturn in 2008. The market has stabilized and shown some growth since, but it is important to stay on top of current trends in the commercial market. This is one way that you can rest easy knowing that you are buying low enough to afford investing a little to turn a nice profit.
Accurate Risk Assessments
It is impossible to take all of the risk out of investing in commercial property, but good consulting services can help assess whether a property is worth what is being asked. Two comparable properties can be worlds apart in overall value when you consider current valuation versus asking price, location, local tax base and many other factors. The whole goal is to use commercial property risk management as an effective tool to end up on the up side of the deal.
Understanding Demographics and Growth Patterns
Commercial property has increasing value if the area is expected to experience growth. Business thrives on a large customer base. Quality commercial real estate consultants know how to read current demographics and spot the growth patterns that uncover the golden deals. They will be able to uncover the areas that are best to put money into for long term results.
Deep Research Specialists
Relocation of highways, pending zoning changes and restrictions of property use can hinder a commercial property investor. Complete understanding of the potential for electrical, water or traffic changes is a must to make the best buying decisions. A consultant will do the deep commercial property research necessary to provide a clear picture of the viability and usability of a potential investment. Having the right knowledge beforehand can save a lot of financial headaches in the future. This type of information is priceless to anyone considering commercial property investment.
Contact a commercial real estate consultant today and step up your commercial property investment game using the timely information you need.