Reviewer.

What is Audit for …?/Importance of Audit/Why is audit hard for….

Construction and Real Estate

A construction audit assures you that the financial piece of the project is being well managed and
monitored, which strengthens the relationship between the business owner and the construction company.
When you perform audits, costs are verified and the cost structure is reviewed.

A real estate audit is a check conducted to ensure your brokerage and business practices comply
with all relevant regulations. These include those on a local, state, and national level. Audits focus on the
firm's finances and its transaction management processes, documents, and records.

Logistics and Transportation

A logistics audit is a study aimed at measuring the logistics performance of a company. It is

carried out by an auditor working most of the time in a specialized firm. It is a diagnosis that identifies
any errors within the supply chain. Auditing promotes safe motor-carrier operations by making sure
companies, drivers and vehicles comply with the legislated requirements. The audit process is used to
assess compliance in the areas of driver qualifications, hours of service, vehicle maintenance, and
transportation of dangerous goods.

Power, Water, and Telecommunications

Telecom audits are a process that looks through a business's telecommunication expenses and
identifies areas that they might be overspending. Professional auditors will look at local telephone bills,
wireless services, internet bills, long-distance calls, and other charges for inaccuracies.

The audit establishes the quantity/volume of water being used, wastage if any, leakages existing,
excess use etc., and identifies areas where consumption can be reduced. It critically examines existing
treatment systems and practices and recommends changes to improve efficiency and reduce usage.

The DOE defines performance audit as the complete and careful inspection and examination to
determine whether systems and facilities in the operation of the power generation, transmission and
distribution sectors are in accordance with standards.

Problems/Issues

Construction and Real Estate

Problems
  Neighborhood Opposition - It's easy to underestimate the potential for neighborhood opposition.
Projects can be derailed if neighbors successfully pressure elected officials to kill a project—even
when the law is on the developer's side.
 Job Site Risks - Construction sites are inherently risky, and those hazards need to be identified
and evaluated.
 Design Defect Losses - Architects generally maintain professional liability insurance to protect
against mistakes like specifying the wrong type of concrete or miscalculating a structural load.

Issues

 Affordable housing: The government is ramping up efforts to address the shortage of affordable
housing units in the country, particularly for the low-income sector.
 Development of new urban centers: The government is pushing for the development of new
urban centers outside Metro Manila to decongest the capital and spur economic growth in other
regions.
 Impact of the COVID-19 pandemic: The pandemic has had a significant impact on the real
estate and construction industry, leading to a slowdown in activity and causing some projects to
be put on hold.

Logistics and Transportation

Problems

 Poor traffic predictions

 Cost of fuel
 Poor weather predictions
 The cost of fleet maintenance
 A lack of skilled drivers
 Poor routing strategies.

Issues

The Philippine logistics industry is facing a number of issues that are hindering its growth and
development. These issues include poor infrastructure, inadequate transportation systems, and a lack of
efficient supply chain management practices

Power, Water, and Telecommunications

Problems

The Philippines faces three energy/power insecurity problems: 1) electricity demand is growing
fast; 2) the supply of electricity is often short of demand; 3) the discrepancy in electrification rate between
cities and rural areas.

Water companies are contributing expertise, perspectives and research to inform the debate on
the future of water. Looking forward to the next 25 years and more, the water sector faces challenges
from population growth, climate change, tightening environmental standards and changing customer
expectations.

Telecommunications

 Complex Operational Processes - Handling complex operations requires more resources and
tools, which also increases the financial overhead of telecom companies.
 Remote Working - With Covid-19 quickly spreading across the world, keeping hundreds of
employees inside a contact center is both a threat to their health and, in some countries, even
illegal.
 Network Security - With the emergence of new technologies, ensuring network security has
become another major challenge for telecom operators.

Issues

 Decreasing interest rates make it less profitable to run power companies

 The gap between energy supply and demand is increasing due to various factors
 Climate change has a big influence on weather patterns

Urbanization, sewer spillage risks, flooding, sustainable energy supply and climate change are but a
few environmental challenges facing the water industry. As discussed, increased population and urban
sprawl can increase risk of storm water runoff pollution, if not managed correctly

Amid a high inflationary environment — pushing up operating costs — telcos must also deal with
a range of challenges from customers' cost-of-living pressures, to evolving expectations around security,
to changing perceptions of workforce culture — the threats being faced are both urgent and diverse.