SUBJECT: Auditing and Assurance: Specialized Industries

Assessments 4:

1. State the nature and background of the specialized industry.

2. What are the relevant statistics, and updates of the specialized industry in the Philippine setting?

3. Identify the different audit and accounting considerations and trends for the industry.

4. Look for at least 2-3 audited financial statements of companies under the specialized industry in the Philippines and list down your observations from audit report to the financial statements.

MODULE 4 Auditing Construction and Real Estate Industry Overview: One successful business in the construction world is the real estate industry. This industry covers many aspects of the property such as development, leasing, appraisal, marketing, and management of commercial, residential, agricultural, and industrial properties. The industry fluctuates depending on the economies but at the same time remains consistent since people always need homes and businesses need commercial space. While Covid-19 has thrown the Philippines' economy into flux, early indications suggest that construction and real estate is one of the most resilient sectors and could provide a platform for national recovery. However, with construction projects delayed by lockdowns during the second quarter of 2020, and demand for office space and high-end residential developments weakened by mobility restrictions, the sector still faces headwinds. At the same time, the disruption of the pandemic is giving rise to new opportunities. For instance, with the pandemic inducing a significant shift towards working from home as companies adhere to social-distancing measures, co-working spaces are emerging as a solution for firms seeking to decentralize while ensuring a sound operating environment for employees. Agile real estate developers have the chance to establish a first-mover advantage and capitalize on emerging opportunities as tenants and buyers seek projects that meet the demands of the new normal. Module Objectives: MODULE 4 Auditing Construction and Real Estate Industry Overview: One successful business in the construction world is the real estate industry. This industry covers many aspects of the property such as development, leasing, appraisal, marketing, and management of commercial, residential, agricultural, and industrial properties. The industry fluctuates depending on the economies but at the same time remains consistent since people always need homes and businesses need commercial space. While Covid-19 has thrown the Philippines' economy into flux, early indications suggest that construction and real estate is one of the most resilient sectors and could provide a platform for national recovery. However, with construction projects delayed by lockdowns during the second quarter of 2020, and demand for office space and high-end residential developments weakened by mobility restrictions, the sector still faces headwinds. At the same time, the disruption of the pandemic is giving rise to new opportunities. For instance, with the pandemic inducing a significant shift towards working from home as companies adhere to social-distancing measures, co-working spaces are emerging as a solution for firms seeking to decentralize while ensuring a sound operating environment for employees. Agile real estate developers have the chance to establish a first-mover advantage and capitalize on emerging opportunities as tenants and buyers seek projects that meet the demands of the new normal. Module Objectives