Get ready for your underwriter’s escrow audit

An escrow audit asks one question many ways: can you prove the money in the account belongs to the files on your books, and that every exception was found and handled? The work that answers it is done month by month, not the week before the auditor arrives.

What auditors tend to ask for

• Monthly three-way reconciliations for every escrow account, with the bank statements behind them.
• The outstanding items list, and how long each item has been open.
• What happened to old outstanding checks and negative file balances.
• Evidence that reconciliation is done by someone independent of receiving and disbursing the funds.

If the audit is already on the calendar

AER’s Backlog Cleanup and Audit Preparation engagement is for agencies with aged exception backlogs, stale-check accumulation, or an upcoming underwriter or regulatory audit. AER works through the backlog with the agency and prepares audit-ready documentation. It is scoped and quoted after review.

If you want every audit to be the easy one

The Monthly Escrow Compliance Program keeps the record current: daily reconciliation, and a monthly portal with each open item past its threshold, the date AER first identified it, and a three-way summary of book, bank and trial balance. At audit time, a separate portal for your underwriter’s auditor holds each period’s reconciliation report and bank statement, account by account.

See your exposure first

The Audit Exposure Snapshot is free. Send your three-way reconciliation reports and matching bank statements. Within five business days of a complete packet you get a one-page read of aged outstanding items, unresolved exceptions and documentation gaps.

Questions

Will AER sit in on the audit?

Book a call and we will talk through your audit date and scope.

Does AER perform the audit?

No. Your underwriter or its auditor performs the audit. AER prepares the reconciliation record and documentation the auditor reviews.

Book a Call