Understanding and Auditing Real Estate and Real Asset Investments – Virtual
Notice: Course times are 8:30 am – 4:30 pm Central Time. Virtual information will be communicated to the attendees at a later date, closer to the event.
Auditing the Real Estate and the Real Asset Portfolio (Real Assets) at your firm can be very intimidating due to the complexities and differences in real asset investments compared to other investments. Every investment sector in your company’s portfolio has its share of jargon and acronyms — but the real assets investment class would probably take the award for the most complicated.
While auditing Real Assets can be very challenging, we are here to help you. Given current market conditions, the increased volume of investments into real assets and the higher interest rate market — this is a class you do not want to miss. We will break down the complexities, learn critical concepts and then focus on the risk, controls and how to focus your audit. We hope you will join us for this newly developed course.
Understanding and Auditing Real Estate and Real Asset Investments Course Features and Discussion Topics:
(Course Content Subject to Change to Address Current Market Conditions)
Real Asset Investments Class Overview:
- Advantages and Disadvantages:
- Advantages and Disadvantages of Investments in Private Real Estate.
- Advantages and Disadvantages of Investments in Public Real Estate (REITS)
- Real Asset Management Methodology:
- Characteristics of Real Estate Investments Portfolio Management:
- Direct Investments
- Commingled funds
- Separate accounts managed by Registered Investment Advisors
- Joint ventures
- Blend of internal/external management
- Characteristics of Real Estate Investments Portfolio Management:
- Understanding Different Types of Real Asset Investments and their Unique Characteristics. (Equity vs Debt)
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- Commercial
- Residential
- Multifamily
- REITS
- Structured Debt
- Residential Mortgage Securities
- MBSs
- CMOs
- CDOs (Subprime)
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- Characteristics of Real Property Investments
- Fixity and Permanence
- Longevity
- Risk
- Market Segmentation
- The Importance of Real Estate Cycles and Market Indications
- Buyer’s Market
- Seller’s Market
- Inflationary conditions of today and the impact.
- Understanding the Basic Principles of Real Estate Evaluation
- Principles of Valuation, Substitution, Balance, Contribution, Conformity, Anticipation.
- The principle of highest and best use
- Three Stages of Changing Property Valuation
- Integration: a condition of developing value.
- Equilibrium: a condition of stable value.
- Disintegration: a condition of declining value.
Auditing Real Estate Investments – A Risk Based Approach:
- Understanding the Risk in Real Asset Investments.
- Market Disruption, Business, Financial, Liquidity, leverage, Inflation, Management, Valuation & Performance, Manager Incentives and Fees, Administrative, Legal & Regulatory, Environmental, Accounting, Reporting, Appraisals, etc.
- Discuss Best Practices & Key Controls in Real Estate Investments
- Discussing the critical Real Asset Audit Objectives and Audit Scope
- Very important to “Ring Fence” the scope and objectives to prevent scope creep.
- Real Asset considerations during Audit Planning
- Critical Audit Steps to Consider in Audit Program Development
Course Duration: | 1 day(s) |
CPE Hours Available: | 8 |
Field of Study: | Accounting (4), Specialized Knowledge (4) |
Program Level: | Intermediate |
Prerequisites: | General Knowledge of Audit & Investments |
Advance Preparation: | None |
Delivery Method: | Group Live or Group-Internet Based |
Investment Training and Consulting Institute, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credits. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org. | |
Attendance Requirements: | In order to be awarded the full CPE hours, attendees must complete at least 3 attendance monitoring mechanisms (codewords, polls, etc) per CPE hour. |
Policy Information: | For more information regarding how to register for a course, refund, program cancellation, complaint resolution policy and other frequently asked questions, please visit our Q&A page or contact our office at 785-783-8201. |
Hourly Schedule
Day 1 - Agenda
- 8:30am - 4:30pm
- Day 1 - Understanding and Auditing Real Estate Investments
- Day 1 of the course will start at 8:30am and end at 4:30pm Central Time.
Speaker
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Barbara DavisonCEO, President and Audit Principal
Barbara Davison is currently CEO, Audit Principal and Board Chair of the Investment Training and Consulting Institute, Inc. (ITCI), located in Overland Park, Kansas. ITCI provides training and consulting in the areas of Investments, Derivatives, and Risk Management to Management, Operations and Auditors.
Barbara is a distinguished faculty leader for the International Institute of Internal Auditors, where she has served for more than 25 plus years. She is a Certified Internal Auditor, Certified Information System Auditor, Certified Investments and Derivatives Auditor, a Fellow of the Life Management Organization and the author of five books on investment and derivative auditing: “Auditing Investment Activities,” “Auditing Derivatives Strategies,” “Auditing Merger and Acquisitions Strategies,” “Understanding and Auditing Investments and Derivatives,” and “The CIDA Review Book.” Barb has obtained her Series 7 and Series 65 from the National Association of Security Dealers (NASD).
Previously, Barbara was vice president of a financial institution where she directed investment operations for the general account and mutual funds. Her responsibilities also included portfolio management of two mutual funds, which were part of a $7 billion portfolio. Prior to her seven years in investments, Barbara was Manager of Internal Audit for six years, where she was responsible for the management of corporate audit activities, computer security, information systems audits and assisted in new business strategies.