A survey of over 150 brokers during the past 12 months demonstrates the success of the Real Estate Council of Alberta’s (RECA) compliance audit program.

Brokers from around the province whose brokerages were audited during the 12-month period were asked about their experiences with RECA’s compliance audit program. They were asked to comment on the contact prior to the audit, the audit itself, and the audit follow-up. With very few exceptions, brokers reported that RECA’s compliance audit program is a positive, beneficial experience.

RECA conducted the survey to identify areas within the audit process that could be improved in order to better assist brokers while maintaining the integrity of the process.

While there may be a presumption within the industry that the RECA audit process will be stressful and intrusive, in reality, RECA attempts to minimize the stressfulness and intrusiveness by ensuring that auditors conduct themselves in a courteous, professional and approachable manner, and that the audit results are explained in a constructive way. All brokers who responded to the survey reported that the RECA auditors were courteous, professional and approachable.

Survey highlights

All brokers who responded to the survey reported that RECA auditors were courteous, professional and approachable. Ninety-eight per cent of the brokers said the audit was helpful and that the results were explained in a constructive way.

A surprising 80 per cent of the brokers said it was not disruptive to their business activities, largely because of the advanced scheduling (in most cases RECA is able to schedule at a date convenient for the broker) and because RECA provides a list of required records prior to the audit.

Ninety-six per cent of the responding brokers said the audit process was a positive and constructive experience, 93 per cent said the audit helped them identify and resolve potential problems, and 95 per cent said the audit helped them develop more effective record-keeping and administrative procedures

RECA’s compliance audit program is led by audit coordinator, David Pomeroy, and supported by auditor Gillian Down. David has been with RECA since its establishment in 1996, while Gillian is a newer addition to the team, having joined RECA in 2008.

David and Gillian are integral to the success of RECA’s audit program, and in fact, are largely responsible for the favourable reviews the program gets from brokers.

To find out more about RECA’s compliance audit program, please visit www.reca.ca. If you wish to request a courtesy audit, please contact RECA’s compliance audit unit at (403) 228-2954 or toll-free at 1-888-425-2754.

Compliance audit program

A compliance audit is a review and examination of system records and activities to ensure compliance with statutory obligations under the Real Estate Act and to recommend any needed changes in control, policy, and procedures.

RECA’s compliance audit program has four main objectives:

1. To be of service to industry members: Auditors work constructively with brokers in developing sound accounting practices and procedures that comply with the Real Estate Act and the Rules.

2. To promote compliance with the Real Estate Act and the Rules: A small percentage of real estate practitioners may work outside of the laws and standards that govern the industry – this can adversely affect the public’s view of the industry as a whole. RECA’s audits reduce the occurrence of activities in violation of the Real Estate Act or the Rules.

3. To safeguard the integrity of the licensing system: Auditors check to make sure brokerages are following policies associated with the use of RECA’s online licensing system, RECA Online.

4. To reduce the number of claims against the Assurance Fund: The cost of claims made against the Assurance Fund is shared by all industry members. Identifying problems before they develop reduces the number of claims against the fund, which benefits everyone.

When selecting brokerages for audit, RECA has two primary objectives:

1. Targeting brokerages that pose the greatest risk to the public and the Assurance Fund.

2. Visiting all brokerages on a regular basis.

New brokers are also invited to request that RECA conduct a courtesy audit. A courtesy audit is an educational resource to help ensure that new brokers are aware of the provisions of the Real Estate Act that apply to brokerage accounting. An auditor will review your books and records and, if necessary, assist you in making changes to ensure compliance with the Act.

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