Audit Process and Analysis

The adequacies of insurance coverage to cover possible losses against lenders collateral are assessed. Inventory or service liability insurance or warranties are also assessed.

We review cash receipts and disbursement, cancelled checks, and perform bank reconciliation during this analysis.

We perform systems analysis to determine the reliability of our clients’ customer’s management information systems. Through this analysis also, our staff are able to determine the records that will be available for collateral monitoring. Additionally, we review companies billing procedures and credit and collection policies.

The Company’s staff review footnotes to financial statements, review major accounts in the financial statements and ascertain and ensure compliance to financial covenants between CEB ABL Audit Group’s clients and their prospects or existing customers.

The company’s team of qualified staff review inventory posting processes, statistics, inventory comparative trend, physical test count and sampling, gross profit tests, inventory costing, inventory concentration, and slow moving inventory. We also review and analyze the impact of inventory in-transit on L/C.

The accounts payable analysis performed during most due diligence include A/P concentrations, statistics, and a comparative A/P aging trend and invoices tests. Held checks are also aged during this analysis.

Our examiners perform in-depth account receivable aging tests for the proper movement of invoices in the aging. We review and analyze account receivable concentrations and turnovers as well as account receivable past dues. Telephone verifications are performed on randomly selected invoices. We also review and analyze comparative A/R aging trends and statistics while reviewing bad debt, credit memos, and cash application and subsequent remittance. Additionally, we review the G/L to determine all accounts that are possible off sets to AR.