In finance and real estate, capitalization is the process of deriving a present value for future income through a capitalization rate. In accounting, it involves setting up an asset on financial records to be depreciated over its useful life rather than expensed immediately.
An audit in the context of real estate refers to the inspection and evaluation of financial records and procedures, conducted by a Certified Public Accountant (CPA) or other qualified individuals. It ensures that the financial aspects of real estate transactions, ownership, and management are accurately and fairly presented.
