Real Estate and Construction

8/11/2019 Real Estate and Construction

1/8

RISK ADVISORY SERVICES

REAL ESTATE ANDCONSTRUCTION


2/8

Real estate and construction | BDO2

IN A SUSCEPTIBLE INDUSTRY LIKE

REAL ESTATE AND CONSTRUCTION,

IT IS IMPORTANT TO PRACTICE

CAUTION WHILE GRASPING THE

OPPORTUNITIES.

As economic and financial challenges weigh on, you have probablyfound it increasingly difficult to locate enough monetary supportto help sustain your organization. Changes to taxes, along withregulatory requirements, create further complications wherecustomers want new solutions and products that both addressenvironmental concerns and outshine any potential competition.

Jobs in the real estate and construction industry are currentlyfacing hardships. Real estate investment trusts, mortgageinvestments corporations, as well as other financial and taxopportunities are being developed more thoroughly than before,while limited partnership and private trust structures are becomingmore complex.

Our real estate and construction practice

BDO provides a full range of services tailored to help organizationsaddress their changing needs in key segments of the real estate anconstruction industry. We offer a personalized approach combinedwith quality service, accessibility and commitment to our clients.

For decades, our more than 100 dedicated real estate and

construction partners and professionals have helped over 8,000clients in Canada and many more internationally. We understandthe issues that our real estate and construction clients are facing,including the importance of seeking practical advice that is backedby years of experience.


3/8

Real estate and construction | BDO

Risk in real estate

Taking proactive measures and outlining all of the risk factors

facing real-estate organizations can allow risks to be turned intoopportunities for improvement and success. The BDO Risk AdvisoryServices (RAS) Team is part of a dedicated national practicecommitted to helping real estate organizations understand andassess the risks inherent to their businesses. Our approach torisk mitigation combines talent, experience and an exceptionallymotivated team to provide clients like you with innovative,cost-effective and value-added services that make a difference.

Our RAS practice offers a combination of services designed toaddress the real estate and construction industry. From enterprise-wide risk initiatives and corporate governance programs tospecific niche service solutions, our team can work with you tocreate strategic, practical and effective processes to minimizeorganizational risks and maximize business opportunities.

Service auditors reports

Service auditors reports (SARs) can be especially useful inthe real estate and construction industry. They are designedto provide information and assurance about controls within aservice organization (e.g. real estate corporations, REITs) to userorganizations (e.g. property management firm, managementorganization) and their auditors. They also aim to help stakeholdersgain an understanding of the internal controls placed in operation at

the service organization regarding its controls involved in executingits financial services for the user organization.

Some additional benefits of SARs include:

Minimizing the need to deal with client auditors Reducing client audit fees by reducing the effort of the external

auditors

Ensuring that the services being outsourced are managed prope

Clarifying the internal control processes in place at the serviceorganization

Identifying efficiency issues as well as duplicate controls

The service auditors report focuses on the controls involved inprocessing financial transactions by a service organization, and areconducted in accordance with CICA Handbook Section 5970 issueby the Canadian Institute of Chartered Accountants or SAS 70

issued by the American Institute of Certified Public Accountants.

There are two types of each style (S5970 / SAS70) of report:

Type I is a report on the controls placed in operation as at aspecific date

Type II is a report on the controls placed in operation and tests othe operational effectiveness of controls during a specified perioof time

For decades, our more than 100 dedicated real estate andconstruction partners and professionals have helped over 8,000clients in Canada and many more internationally. We understand

the issues that our real estate and construction clients are facing,including the importance of seeking practical advice that is backedby years of experience.


4/8


Enterprise risk management

Calculated, carefully-determined risks are instrumental in helping

an organization grow and flourish. However, business risks that stemfrom technological, environmental, political and commercial factorscould threaten the viability and profitability of an organization.

A solid enterprise risk management (ERM) plan can help you takestrategic, premeditated risks to help your organization reach newheights, while managing the numerous threats and risks that canimpede organizational growth. It can also help you maximizeorganizational opportunities, while mitigating and managing theinherent risks to your business and industry. This can help yousurvive hardship and remain operational, functional and viable.

Our RAS professionals will work with you to strategically, tactically

and critically think outside the box. Together, we can create a uniqueand innovative ERM program that will meet your strategic businessneeds, while weaving a culture of risk understanding and awarenessinto your organizational fabric. We offer considerable insight andexperience across all aspects of the real estate and constructionindustry from investment vehicles to developers and associatedsupport services. By understanding the challenges our clients face,we are more proactive in delivering relevant, focused and practicaladvice for their businesses.

At BDO, our audit and risk advisory services show real estateand construction companies how and where they can improveproductivity through efficient business processes and cost controls.

Internal audit services

Growing businesses must move swiftly in order to take advantage

of their opportunities, while simultaneously assuring themselves,their shareholders, lending institutions and legislature that theirinternal processes and controls are secure and compliant with stricregulatory environment rules.

Our audit services include:

Strategic partnering and co-sourcing

IA function set-up

Quality assurance review

Technology, risk and security

As technology continually changes, so do the underlying risks ofthese new advancements. A companys information technology is strategic asset that needs to be managed effectively and efficiently

Our information technology (IT) services include:

Enterprise security

Business continuity and disaster recovery

IT controls design and evaluation

Data management services

IT governance IT assurance

At BDO, our audit and risk advisory services showreal estate and construction companies how and

where they can improve productivity throughefficient business processes and cost controls.


5/8


6/8


OUR TEAM

SAM KHOURY, CAIT, CPA, CITP PARTNER

[email protected]: 416 369 6030

Sam has extensive years of assurance and risk advisory experiencespecializing in the implementation of change management projects,including IFRS conversions, enterprise risk management, and othercorporate governance initiatives. He previously articled in assuranceand advisory services where he managed a client portfolio of bluechip corporations, financial institutions and medium-sized publiccompanies. His further expertise includes internal controls, projectmanagement (PMBOK), risk management, change management,business process re-engineering, and technology solutionsalignment with business objectives.

CARLO MARIGLIA, CA, CPA, CISA, CIA PARTNER


Carlo manages and supervises numerous Risk Advisoryengagements across multiple industries. He has extensiveexperience in co-sourcing Internal Audit functions and ERMconsulting. He has also played a key role assisting numerousCanadian public companies and other publicly-accountableenterprises in their transitions from Canadian GAAP to IFRS.He previously articled in assurance and business advisoryservices, managing various public company engagements, andlater focused on evaluating internal controls over financialreporting, business process enhancement, IT audit, internal audand risk management. His further expertise includes corporategovernance practices, project management framework andpractices, implementing the Business Continuity ManagementProgram under BS 25999, and establishing and maintaining aninternal audit function in accordance with IIA standards.


7/8

Real estate and construction | BDO

OUR TEAM

DAVID KNOTT, CISA SENIOR MANAGER


David is responsible for the management and supervision ofnumerous information technology, internal controls, and IT securirelated engagements for the BDO Technology and Risk ServicesPractice. Prior to joining our firm, he provided IT security servicesin assurance and business advisory services in the technology riskmanagement groups of two other leading firms, managing variousinformation system services engagements for a wide range ofclients. His further expertise includes information systems auditservices, IT general controls assessments, payment card industryservices, internal IT controls design and testing, ISO 27001consulting services, IT forensic services, CEO and CFO certificationservices, ethical hacking services, disaster recovery and businesscontinuity planning, and IT project management consulting.

PIERRE TAILLEFER, CA, CISA, CFE PARTNER

[email protected]: 514 931 0841 ext. 2504

Pierre leads the RAS practice in Montreal with 20 years of in-depthexperience. He has been involved in various engagements coveringservice organization controls reports, the Sarbanes-Oxley Act of 2002and Multilateral Instrument 52-109, investigation and anti-fraudprograms, management of internal audit outsourcing engagements,outsourcing contract reviews, compliance mandates, and businessprocess, internal controls, due diligence and security reviews. He hasalso worked with cash logistics, IT outsourcing (including applicationsand hardware) and broker-dealers. His further expertise includesbusiness process re-engineering, technology solutions alignment withbusiness objectives, and IT risk and controls.


8/8

Toronto Centre OfficeRoyal Bank Plaza, South Tower200 Bay Street, 33rd Floor

Toronto ON M5J 2J8

www.bdo.ca

BDO Canada LLP, a Canadian limited liability partnership, is a member of BDO InternationalLimited, a UK company limited by guarantee, and forms part of the international BDO networkof independent member firms.

BDO is the brand name for the BDO network and for each of the BDO Member Firms.

RAS-REC-R.04.12

Real Estate and Construction

Documents

Transcript of Real Estate and Construction