Auditing is a means of evaluating the effectiveness of a company's internal controls. Maintaining an effective system of internal controls is vital for achieving a company's business objectives, obtaining reliable financial reporting on its operations, preventing fraud and misappropriation of its assets, and minimizing its cost of capital. Both internal and independent auditors contribute to a company's audit system in different but important ways.
Audit of Developers as per RERA Regulations
The Audit of Developers as per RERA Regulations (Real Estate Regulatory Agency [RERA] demands that its developers have ESCROW accounts based on each project) helps to assess the efficiency of the various activities of developers. This also helps to verify if the developer complies with the applicable rules and regulations as required by RERA. Finance-based audit offers to review a list of units cancelled, sold and cash received from buyers, retention of account balance, project construction, management and marketing related payments, advanced payments to contractors and many more.