Mortgage Brokers

Need An Audit Done Due To NMLS or State Requirements?

We can help!

Every industry has its peculiarities and regulatory laws and agencies; the Nationwide Multistate National Licensing System(NMLS) is a regulatory and licensing body for Mortgage Brokers. As a part of the SAFE Act (Secure and Fair Enforcement for Mortgage Licensing), yearly audits through NMLS may be required. It should be conducted by independent auditors testing for compliance through their personnel or outside parties.

At Metwally CPA, we offer top-notch and seamless audit and financial advisory services to mortgage brokers. The beautiful part is that time is of utmost essence to us, and we deliver these services effortlessly and seamlessly.

At Metwally CPA, we value our clients’ services and see these engagements as a valuable tool to help you further understand and manage your business. We view the audit and review process as an opportunity to help you identify positive changes for your organization and take necessary steps to help your firm grow and prosper. We also share our experience and work with you to improve the quality of your internal control system which will lead to increase in the efficiency and effectiveness of your operation.

How it works

The auditor’s job is to provide a reasonable assurance that the financial statements presented have no material misstatements. Our audit methodology is as follows:

Planning: To properly plan and perform an audit, the engagement team obtains an understanding of your business and industry, we accomplish this by inquiring with management during walkthrough meeting, gathering documentation, and filling out our audit questionnaire. As we get to know you and your industry, we will share our experience which can lead to improvements in operations, internal controls, and the identification of valuable performance benchmarks.
Testing: Once our planning is done, we then use our audit methodology to perform a bundle of test techniques such as Substantive Analytical Procedures, Key Items testing, and Test of Details to be able to conclude on your financial statements.
Completion: We then start wrapping up our audit file and getting ready for issuing your audit report. We review the required disclosure and presentation prior to issuance.

Does audit get easier over time?

Yes, we leverage our knowledge of your entity that we gain from prior years audits to complete tasks in the current year audits, which will lead to reduction in overall time needed to get to know your entity and industry. There would be less questions than the year before, less requests, and smoother planning procedures. We use an audit technique called rollfowrad procedures to perform an efficient audit which makes the recurring audits much smoother.

If you are a small business owner required to have a financial statements audit and looking to conduct a high quality and within the budget financial audit of your company, please contact us

CPA Mortgage Broker Service in Texas

What is NMLS and why might I need an audit through them?

The Nationwide Multistate National Licensing System (NMLS) is a regulatory body for Mortgage Brokers. As part of the SAFE Act, yearly audits may be required through NMLS. These audits, conducted by independent auditors, ensure compliance with regulatory standards.

How does Metwally CPA assist Mortgage Brokers with audits?

At Metwally CPA, we offer seamless and top-notch CPA mortgage broker service in Texas. We understand the importance of timely services and strive to deliver them effortlessly.

What benefits can I expect from an audit or review process with Metwally CPA?

Our audit and review process are an opportunity for positive change. We work with you to identify improvements for your organization, enhancing internal control systems and overall operational efficiency.

Can you explain the audit methodology employed by Metwally CPA?

Our audit methodology comprises three main phases:

Planning: Understanding your business and industry through inquiries, documentation, and audits. Sharing our experience to improve operations and controls.
Testing: Employing various techniques like Substantive Analytical Procedures and Test of Details to assess financial statements.
Completion: Finalizing the audit file, reviewing required disclosures, and preparing the audit report.

Does the audit process become more streamlined over time?

Yes, with recurring audits, we leverage our knowledge from prior years to enhance efficiency. This leads to fewer queries, requests, and smoother planning procedures. Our use of roll forward procedures ensures a more efficient audit process.

What industries do you specialize in for financial statement audits?

We specialize in providing Mortgage Lender Audit Service Texas and review services for Mortgage Brokers and Franchisors. This includes compliance with NMLS requirements and industry-specific standards.

As a business owner and a mortgage broker/lender, you are reunited to have financial statements audit every year to be in compliance with state and NMLS rules and regulations and to be able to renew your license. Therefore, below are the most common questions about the mortgage brokers/lenders financials statements audits that we get asked from new brokers:

Q1: What are financial statements?

Financial statements are formal documents that provide a summary of a company’s financial activities and status. They typically include the balance sheet, income statement, cash flow statement, and statement of changes in equity. Check out our Financial statements services Financial statement requirements for mortgage brokers

Q2: What is a mortgage broker financial statement audit?

A mortgage broker financial statement audit is a comprehensive examination of the financial statements and records of a mortgage broker by an independent auditor. It ensures that the financial statements accurately reflect the financial position and performance of the mortgage broker. See Financial Statements Audit and Review Requirements for Mortgage Brokers for NMLS Licensing

Q3: Why is a financial statement audit important for mortgage brokers?

A financial statement audit is important for mortgage brokers as it enhances transparency and credibility in their financial reporting. It provides assurance to lenders, investors, and other stakeholders that the financial statements are reliable and comply with accounting standards and regulations.

Q4: Who conducts a mortgage broker financial statement audit?

A mortgage broker financial statement audit is conducted by an independent auditing firm or certified public accountants specialized in auditing financial statements. The auditor must be objective and impartial in their assessment.

Q5: What does a mortgage broker financial statement audit involve?

During a mortgage broker financial statement audit, the auditor examines the mortgage broker’s financial records, transactions, internal controls, and accounting policies. The auditor verifies the accuracy and completeness of financial statements, identifies any irregularities or material misstatements, and provides an opinion on the fairness of the statements.

Q6: How long does a mortgage broker financial statement audit take?

The duration of a mortgage broker financial statement audit varies depending on the size and complexity of the business and the scope of the audit. Generally, it can take several weeks to a few months to complete, including planning, fieldwork, testing, and the issuance of the audit report.

Q7: What are the benefits of a mortgage broker financial statement audit?

A mortgage broker financial statement audit offers several benefits. It enhances the credibility and reliability of financial information, improves trust among lenders and investors, identifies weaknesses in internal controls, and helps prevent fraudulent activities. It also ensures compliance with accounting standards and regulatory requirements.

Q8: Can lenders access the audited financial statements of a mortgage broker?

Lenders often request audited financial statements from mortgage brokers as part of their due diligence process. Audited financial statements provide lenders with a reliable and independent assessment of the mortgage broker’s financial condition and stability.

Q9: Are there any consequences for mortgage brokers who do not conduct a financial statement audit?

While a financial statement audit may not always be legally required for mortgage brokers, not conducting one can have negative consequences. It may erode trust among lenders and investors, hinder access to financing, and raise questions about the accuracy and reliability of financial information.

Q10: How often should a mortgage broker undertake a financial statement audit?

The frequency of financial statement audits for mortgage brokers depends on various factors, such as regulatory requirements, industry best practices, and the size and complexity of the business. In general, auditors recommend conducting an audit annually to ensure accurate and up-to-date financial reporting.

Please note that while this information provides a general understanding of mortgage broker financial statement audits, it is recommended to consult with a financial professional or auditor for specific guidance related to individual situations. If you have any questions, please contact us.