Exam CFM Topic 6 Question 37 Discussion

Actual exam question for IFMA's CFM exam
Question #: 37
Topic #: 6
A tenant questions annual reconciliation charges for common area and operating expenses per their lease. What is the strongest business practice for ensuring accounting practices are sound?

Suggested Answer: B Vote an answer

Performing independent audits (Option B) ensures financial transparency, accountability, and compliance with industry standards.
Why Option B is Correct?
* Internal or external audits verify accuracy, compliance, and identify errors.
* Maintains credibility and trust with tenants.
* IFMA's Finance & Business Core Competency highlights audits as a best practice in lease accounting.
Why Other Options Are Incorrect?
* Option A: Internal checks help but do not provide independent verification.
* Option C: Having a tenant's accountant review internal records creates a conflict of interest.

by Catherine at Sep 10, 2025, 01:29 AM

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