I.
Introduction
- Objectives
- History/ Trends
- Purpose of Exams
- Types of Exams
- Role of the Examiner
- Examination Steps
II.
Financial Statements / Records / Electronic
Data
- Financial Information Flow
- Management Reports
- Financial Statement Considerations
- Unusual Postings
- Internal Controls
- Use of Electronic Data
III.
Accounts Receivable
- Why Lend on A/R?
- Credit and Collection Systems/Internal
Record Keeping
- A/R Lending Methodologies
- Advance Rate Considerations
- Necessary Reporting
- Eligible vs Non Eligible Accounts Receivable
- Testing
IV.
Cash
- Cash Cycles
- Types of Accounts
- Risk / Concerns
- Testing
V.
Inventory
- Inventory and its Components / Definitions
- Inventory Cycles
- Valuation
- Lending Concerns
- Eligible vs Non Eligible Inventory
- Testing
- Insurance
- UCC filings
VI.
Fixed Assets
- Lending Considerations
- Ownership / Liens
- Valuations
- Appraisals
VII.
Accounts Payable / Liabilities
- Lenders Concerns / Risks
- Testing of A/P
- Red Flags
- Other Liabilities / Hidden Exposure
- Taxes
- Notes Payable / Subordination
- Deferred Revenue
- Letters of Credit
VIII.
Fraud
- Extent of Fraud and Abuse
- Detect and Communicate
- Sarbanes-Oxley
- Consideration of Fraud in a Financial
Statement Audit
IX.
Examination Efficiencies
- AR Efficiencies
- Inventory Efficiencies
- Cash Efficiencies
- AP Efficiencies
- Avoiding Over-Examining
- Extrapolations
X.
Report Writing
- Be Organized
- Content
- In the Field / In the Office
- Consider your Audience
- Things to Avoid
- Provide Actionable Recommendations
- Proof Read
- Follow-up
