Audit Specialist reviews
GEMM can assist Audit firms by providing its expertise on valuation complex issues covering a range of areas as follows:
-
Real estate valuation reviews including land and buildings
-
Audit Client’s equity valuation reviews
-
Financial & Derivative instruments (i.e., Loans, bonds options, warrants etc.) valuation reviews
-
Going concern reviews
GEMM’s methodology in audit reviews covers the following areas:
-
Request from the Audit team a clear scope of engagement
-
Based on the scope of engagement provided by the audit team, GEMM will provide a clear scope of work including but not limited to the following:
-
Brief description of agreed scope of engagement with the audit team
-
Review of the Audit Client’s valuation methodology utilised
-
Comment on the appropriateness of the valuation methodology utilised by the client
-
Review and assess Audit Client’s assumptions applied in the valuation workings provided. GEMM must agree explicitly with the audit team on the extent of the assumptions to be reviewed and challenged based on market/industry benchmarks.
-
Re-calculate the value of subject property, business etc. based on the reviewed and challenged assumptions.
-
Perform sensitivity analysis and/or scenario analysis based on what has been pre-agreed with the audit team.
-
Assess the qualification and credentials of the appraiser if applicable.
-
Comment on the professional principles and valuation standards.
-
Provide to the audit team valuation review findings and conclusions.
