How can real estate companies prepare for a RERA audit?
To this extent, it is imperative for real estate companies, particularly in Dubai, to familiarize themselves with aspects of RERA audit. This process serves the purpose of maintaining required norms and standards and also assists in maintaining the level of transparency which is required for building up the investors confidence. Here’s a comprehensive guide on how to effectively prepare for a RERA audit:
1. As a tribute to this knowledge the different levels of understanding the scope includes the following;
A number of issues normally come under scrutiny during an RERA audit, which include the financial controls of the developer, the project controls, the customer relations and the marketing strategies. One must be sure of what exactly the audit is going to be all about in order to prepare sufficiently. There should be a consistent check from the side of RERA as to the changes of the rules and regulations and updates to be followed continually.
2. Organize Financial Records
Make sure that all the financial records are current and properly documented to signify company’s operations. This it involves keeping records of all the transactions in an organized manner, whether they are related to the sales, purchases, employees’ salaries or remunerations and any other expenses incurred. These records must therefore be documented in the proper format that enhances the audit process.
3. Maintain Proper Escrow Accounts
It is required from developers to open escrow accounts for each project they are working on. These accounts should be run with RERA requirements of the expenditures made by the developers, which must be proper and clear. Some of these accounts may include the following and should be reviewed and audited periodically to meet the requirements of RERA
4. Check for Conformity with the Law
Perform a corporate check on all legal issues such as the creation of escrow accounts, project time frame and compliance with service charges. Make sure that all the existing contracts and agreements confirm to RERA and have been duly signed by the right authorities.
5. Prepare for Operational Audits
All the operational audits carried out by RERA focus on the overall readiness of a project in operations. This includes the assessment of the soundness of internal controls, marketing strategies, sales management and others. Make sure that every business process in the organization is documented properly and meet legal requirements set by RERA. This includes having an efficient project management plan as well as a proper management plan for the project.
6. Training and Awareness
Make sure the regulation of RERA is known by all the employees and that they are trained accordingly. Another great benefit of holding training sessions is that they can keep the team informed to the most recent changes in regulations and practices. Choose a compliance officer or a compliance team whom or which will be in charge of the preparation process to make sure that everything is covered as far as the audit is concerned.
7. Engage with Approved Auditors
In our case, it becomes advantageous to work with auditors that have been approved by RERA to work on such projects as they have the experience and knowledge of compliance requirements. This we believe, these auditors can give us some insights and inform us of faculties that require revamp. Experienced auditors are hired as they provide professional work and they also make sure that the audit process is effective and up to standard.
8. Implement Recommendations
Hence after the audit, it is crucial to implement the recommendations given by the auditors and come up with improved recommendations. To avoid future non-compliance, volunteers should correct any observed problem immediately. Stating these recommendations assist in enhancing operation and guarantee constant compliance with RERA regulations.
Quiz: How Can Real Estate Companies Prepare for a RERA Audit?
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