Periodic audits by an independent internal or external auditing group (Option B) ensure accountability and accuracy in financial reporting.
Why Option B is Correct?
An independent audit ensures transparency, credibility, and compliance with lease agreements.
Prevents errors, overcharges, and disputes with tenants.
IFMA’s Finance & Business Core Competency states that financial operations must adhere to best accounting practices, including third-party audits.
Why Other Options Are Incorrect?
Option A (Double-checking internally): Internal review alone is not as strong as an independent audit.
Option C (Tenant’s accountant reviewing the books): Conflicts of interest may arise, and tenants do not have auditing authority.
[Reference:, IFMA Core Competency: Finance & Business – Auditing financial records for facility operations., Source: IFMA Accounting & Budgeting Guide (IFMA, 2023)., , , , ]
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