Industry News

MLS of Northern Illinois to undergo forensic audit

Delay in financial reports prompts shareholder vote

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Shareholders of the Multiple Listing Service of Northern Illinois, one of the largest MLSs in the country, have voted to conduct a forensic audit of the operation and its CEO Jay Huffman. The MLS has about 37,000 members in more than 6,000 realty offices in the Chicago area.   A forensic audit is different from most audits in that it involves auditing, accounting and investigating. Forensic accountants engage in "factual economic transactional analysis that requires a level of detail and precision sustainable in an adversarial legal proceeding," according to the Journal of Forensic Accounting.   PriceWaterHouseCoopers will conduct the audit, which is expected to be complete in approximately 60 days, according to Huffman. Steve Bochenek, attorney for the Illinois Association of Realtors will oversee the process.   Huffman estimates the procedure will cost MLSNI upwards of $50,000.   Terry Penza, president of the Northshore-Barrington Association of Realtors, initiat...