Question

How will audit effort be allocated among geographical areas for REIT companies (self-storage companies)?

Answer 1

The audit of real estate investments trusts is not easy since the real estates are allocated in various geographical areas of the country.

However the audit is to be for these companies also and also needs to be done as per the standards.

The audit procedure however has to be changed for these companies since they have a different structure.

The audit program need to be divided and the duties are to be assigned to various auditors who visit the property personally and do a audit. They then submit the audit report to the main auditor and at the end the audit report received from various different auditors are merged and consolidated and a final report prepares.

if in case there has been a issue in any of the report that has been submitted from a different geographic location then the detailed audit is done for that location and if in case there has been a diverse issue found this is noted in the main audit report of the company.