COLLATERAL AUDITS FOR COMMERCIAL LENDERS
Vastardis and Associates performs asset based lending field examinations for commercial lenders. The audits are to examine the subject company's books and records and the collateral that support the lenders credit facility or lines of credit.
Each engagement's scope of work will vary to address the lender's concerns and interests. A careful examination of the books and records will be conducted to find out how reliable are the financial statements.
Moreover, an in depth examination in areas like financial ratios, strange financial statement relationships, data mining, statistical outliers, and Benford law analysis will be conducted.
All this will be conducted beside the typical ABL Audit work such as verifying the authenticity of receivables, examining sales dilution, bad debts, contra accounts, review of credit and dunning procedures, analyzing the quality of receivables and customers. Inventories will be tested and sample counted. Cash receipts and cash disbursements will be tested for unusual flow of funds.
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