Why spend money on field exams?
IES field exam reports provide lenders with a comprehensive analysis of a Borrower's financial reporting for asset-based lending purposes. If you plan to lend against specific collateral (accounts receivable and inventory, for example), you should know the true value of the Borrower's reporting. Why spend your valuable time reviewing reports that may be based on inaccurate information.
In good economic times and in bad, collateral analysis is an important issue. Most lenders wouldn't think of doing a real estate loan without a real estate appraisal, but are reluctant to audit a borrower's books and records. In a recovering economy, this issue becomes even more important, as management's attention is drawn away from record-keeping and toward expansion.
Unlike the borrower's CPA, the auditor is the bank's representative -- concentrating solely on issues that are important to the bank's lending relationship.
Are all accounting issues uncovered in an accountant's annual visit? Probably not. Has your Borrower had some managerial turnover? Trained several accounting clerks in the same year? They may have issues that need to be uncovered -- for your benefit, and their own.
You can add value to your lending relationship by reviewing the findings of a field audit with your Borrower.
How do we provide professional field exams of the highest quality?
We have 4 full time employees, who have received training in fraud detection, and have varied experience in several industries.
There are many accountants and consultants with accounting backgrounds that provide field examination services. What's the difference between our services and theirs? We're trained with bank and commercial finance backgrounds, and make sure that our field examiners are trained in the same time-honored tradition established by the major financial institutions. We speak your language.
We can undertake assignments in Mexico -- and have trained auditors who can read and understand Spanish.
How can we meet your deadlines?
IES has two offices to serve you. We specialize in field examinations, and nothing else. We're ready to respond to your needs for examinations in California, and elsewhere.
A list of our services:
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New Business Field Examinations
The most comprehensive review that IES offers is the new business survey audit. The new business survey audit is the initial exam conducted on a company. The exam provides management with the information necessary to determine the feasibility of entering into a credit relationship with the prospective borrower. IES reviews company policies and constraints and compares the findings with the requirements of the lender.
Areas evaluated during the new business survey include:
- Turnover ratios
- Concentration of debtors
- Dilution
- Cost testing
- Inventory testing
- Gross margin
- Cash
- Liabilities
- Current financial status
- Future company prospect
- Assessment of management
- Assessment of borrower's industry and position
Takeover exams provide our clients with valuable pre-funding information. This information allows our clients to finalize and streamline on-going collateral reporting.
Areas examined can include:
- Verification of larger debtors
- Review of account receivables
- Establish reporting procedures
- Review and close open issues from the survey audit
Regular maintenance audits provide lenders with a cyclical review of an existing client's books and records. The maintenance audit allows the lender to periodically review the borrower's financial condition and thereby provide a valuable up-to-date assessment of their collateral position.
Areas evaluated while conducting a regular maintenance audit include:
- Turnover ratios
- Concentration of debtors
- Dilution
- Cost testing
- Inventory testing
- Gross margin
- Cash
- Liabilities
- Current financial status
- Future company prospect
- Assessment of management
- Assessment of borrower's industry and position
