AROUND THE WORLD IN 80 AUDITS tales from AtlanticRMS, the Global Field Exam Team
By Hawkins, Richard | |
Proquest LLC |
This is a great way to set the scene of crossborder transactions. Sometimes we have a hard time trying to fathom why some of the challenges we face in conducting international business have come about. I guess it is a good thing to understand that at some point in time it seemed like a good idea. But more importantly an attitude of maybe understanding that these obstacles were not designed specifically to trip up Johnny Foreigner; well not always anyway.
Of course, getting comfortable with a whole new set of rules, time zones, culture and practices needs some patience and understanding, but it is worth noting that in pretty much every country you do business in the locals are probably already providing some form of commercial finance, but maybe not in the same way you are doing it at home. It is often the case that when under stress or uncertainty we revert to type, we usually try to fit a situation, understanding or transaction into our own model of the world.
In the last 18 months Atlantic has conducted assignments in over 20 countries spanning four continents and the challenges of getting the job done has required planning, organisation, expertise and diligence. We are very much into the idea that to be truly international you need to act local; this is why we have set up associates in
"The traveler sees what he sees, the tourist sees what he has come to see"
This quote can be translated to mean: don't send a tourist on an international field exam; it's much too important and the risks of getting it wrong are too great. Chesterton speaks to one of the fundamental field examination requirements and that is the ability to identify fact from information. This applies to all audits, but particularly when you are a long way from base camp.
Industrial parks look pretty much the same everywhere as do airport terminals and hotel rooms. Often we are a long way from the aesthetic, the historic, the culturally significant. It is, however, worth knowing about the culture and area of the place where you are going and conducting background research on the circumstances of the prospect or borrower is vital. We are often called to provide reviews where trading and liquidity conditions are challenged and taking the time to understand the target's status in respect of the market, as an employer, tax payer and buyer of local products and services is valuable.
As well as beingable to cope with airline and ai rport food, jet lag and the vagaries of travel, the international field examiner needs to know about local practices, accounting variations, trading terms, payment terms, payment methods, legal aspects, treatment of taxes, priorities and other potential offsets and challenges to the collateral.
We see the future based on the following prepositions: The World is Flat, time does not stand still, communication is constantand immediate and despite the technological developments there will always be a need for a human being to touch and see real data in real time.
"When you travel, remember that a foreign country is not designed to make you comfortable. It is designed to make its won people comfortable."
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Copyright: | (c) 2014 Commercial Finance Association |
Wordcount: | 610 |
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