Why is audit important? Without it, how do you know if your valuations are fully compliant? How do you know if employees are working to the firm’s own protocols as well as the required valuation standards and rules? If not, it can leave you open to question and at risk of claims against you or your firm. Every professional should allow themselves to be open to scrutiny.
ARC can offer an auditing service whereby, at regular intervals, we carry out a sample audit on selected valuations and give you feedback on compliance. Whilst ARC cannot offer a full forensic examination of the valuation, we can offer an opinion on appropriate methodology to be used and the reasoning, rationale and thought processes required.
What is it? Why is it important that risk is identified and mitigated against?
Surveyors sometimes have no idea that the work they are undertaking can put their business at risk. Undertaking work outside of your area of expertise or knowledge is a risky business and when it goes wrong it can be disastrous for your credibility and your business. Also, Surveyors sometimes do not understand that the client they are working for can put your business at risk. Have you checked them out? Are they reputable? Will they pay your fees?
Are you compromised? How do you know if there is no potential conflict of interest? Undertaking work when you are clearly compromised makes it impossible to provide clear, objective and impartial advice. This is what the courts may say if the client makes a claim against you.
Sometimes surveyors undertake valuation assignments without agreeing fully compliant terms of engagement with the client. This is a huge risk as it is the contract outlining the scope of works you will and will not do for the client. Get these wrong and you have no contract and no comeback if the client decides not to pay or if there is a dispute.
It is important that you take risk seriously and put in place some simple best practice measures and practices to mitigate against these risks and ensuring that all work is being undertaken in accordance with professional standards and obligations.
ARC can offer you best practice solutions ideas and protocols to help you comply.
Why should we comply?
It is a professional requirement. It ensures consistency in the valuation process and in your valuation reports and avoids omission. It can also result in efficiency gains.
It reassures clients and gives them confidence that professionals are adhering to the highest professional standards and that their valuations have been arrived at through a systematic and comprehensive process of due diligence and reasoning.
It helps to ensure the valuation report is ‘right first time’ with a comprehensive audit trail of information, facts and reasoning. It is your first and best defence in the event of a claim.
ARC can offer best practice solutions to make compliance easier such as inspection proformas, checklists, templates for your terms of engagement and valuation reports, spreadsheets, tips and some simple processes.
