Preliminary Analytics/Sampling
In respect to the audit process, this is when audit team should be performing the preliminary analytic.
What is the beginning or planning stages of the audit?
This asset type is a free standing residential building. These can be for rental or to purchase.
What is a single family home?
This financial statement level risk is a common significant/fraud risk across all audits.
What is risk of management override?
If the interest rate cap or swap is above materiality, audit teams are required to involve this CRZ team.
What is the VAS team?
This benchmark interest rate replaced LIBOR.
What is SOFR?
Another name for the CR approved, simplified sampling approach.
What is the 3-6-9 approach?
This type of lease requires the tenant to pay for all of the expenses of the property, including real estate taxes, insurance, and maintenance. This is in addition to the contracted rent and utilities.
What is triple net (NNN )Lease?
This assertion level risk is a common significant/fraud risk in ASC 946 commercial real estate audits.
What is asset valuation?
Interest rate caps are classified in this group of the balance sheet.
What are assets?
Under US GAAP, loan costs are grouped as a liability with which FS line item?
What is debt?
This KBA form should be completed while performing the preliminary analytic.
What is KBA 302 Understanding the Entity and its Environment
This financial statement framework is commonly associated with private real estate equity funds and possess three main components for investment companies.
What Is ASC 946 - Investment Company Guide?
This type of financial statement framework follows the IRS depreciation tax codes.
What is tax basis of reporting?
If not provided from the client, this is where you can locate a property tax bill?
What is the county/assessor website?
This document contains important information of equity allocation, income, distribution, and preferred return.
What is the Operating Agreement?
The advantages of this sampling technique are faster selection methods and easier to expand existing sample. This is dependent on the auditor's judgement.
What is a non-statistical sample?
This term is used for business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task.
What is a joint venture?
This US GAAP concept calculates the total asset/liability under a rental agreement should be charged to income/expense on a periodic basis over the term of the contract.
What is straight line rent?
This real estate tax term applies when payments are made after the period of assessment.
What is paid in arrears?
As part of the loan agreement, these are conditions or restrictions that the borrower must meet to maintain the loan.
What are loan covenants?
This term refers to an error during the test of samples and before the evaluation in the sampling form.
What is a projected misstatement?
This equity/capital term determines the allocation of profits among the equity investors and managers in a real estate project.
What is a waterfall?
This stage of a real estate project incurs closing costs and purchase price of land.
What is the acquisition phase of a real estate project?
This interest rate derivative sets a limit on the interest rate used for variable-rate.
What is an interest rate cap?
The equity term to allocate a partners’ income or loss calculated as the amount each partner would receive if the partnership were liquidated at book value at the end of the measurement period
What is Hypothetical Liquidation Book Value?