Asset Based Lending

Asset Based Lending Services

Maguire Hegarty LLC provides outsourced field examination services for financial institutions involved in lending, especially asset-based lending. We develop, in conjunction with the financial institution, a customized program of field audit tests and procedures and provide an agreed-upon-procedures report at the conclusion of each engagement.

For banks that do not have an internal bank audit team, we provide a team of experienced personnel to conduct the customized program of field audit tests and procedures. These field audit tests and procedures can be performed for current or prospective clients of the financial institution.

Services Provided Include:

FINANCIAL STATEMENTS

• Trace client trial balances to the audited financial statements
• Review unusual account balances and activity
• Review account reconciliations
• Review audit adjustments and passed adjustments
• Review management letter issued by auditor

ACCOUNTS RECEIVABLE

• Review reconciliation between accounts receivable ledger and trial balance
• Review accounts receivable listing for unusual items
• Review of credit policies and procedures.
• Test accounts receivable for existence and valuation
• Perform shipping cut-off test
• Perform accounts receivable concentration test
• Review of past due balances/bad debt history
• Review of bad debt allowance calculation.
• Review credit memos issued

INVENTORY

• Review reconciliation between inventory ledger and trial balance
• Review inventory ledger for unusual items.
• Test inventory for existence and valuation
• Perform inventory receiving cut-off test
• Perform inventory gross profit test
• Review slow moving inventory analysis
• Review excess and obsolete inventory calculation

ACCOUNTS PAYABLE

• Review reconciliation between accounts
payable ledger and trial balance
• Review check register for unusual items
• Perform accounts receivable concentration test
• Review of past due balances

OTHER PROCEDURES

• Review borrowing base reports issued to bank
• Review checking account reconciliations
• Review insurance policies
• Review payroll tax returns
• Review sales backlog reports
• Review lease agreements