- June 01, 1994
- All South Carolina Agents
- How To Prepare for Your Audit (Escrow Audit)
This will be the first in a series of helpful hints in preparing for your yearly audit. Each installment will concentrate on a different phase of the audit process.
When you, as the agent, receive your notification of an upcoming audit, you will note that the Stewart representative requests that your most recent two months' bank statements be available for review, along with accompanying reconciliations. The reconciliations should include the list of outstanding checks, any deposits which have been made but not credited by the bank as of the date of the bank statement, and an open file list or ledger balances. The total money held in open files should equal the reconciled balance of your bank statement. If you are not keeping your open files list current, that total will not equal the bank balance and you will not be considered to have fully reconciled.
The STG representative performing the audit checks the age of the outstanding checks, if all outstanding deposits have been credited by the bank as of the next statement date, the length of time a file retains a balance, the size of the file balance and if an escrow agreement has been obtained on the larger balances. The agent also notes how timely your reconciliations are performed from the date of the bank statement.
In addition, we also request that the last six (6) months' bank statements be available in the event it is necessary to obtain a copy of a cancelled payoff check. This will be requested if a satisfaction has not been received.
In order for the audit to run smoothly, it is very important that all requested documentation be available upon the arrival of the Stewart representative performing the audit. This will save you time and inconvenience.
THIS BULLETIN IS FURNISHED TO INFORM YOU OF CURRENT DEVELOPMENTS. AS A REMINDER, YOU ARE CHARGED WITH KNOWLEDGE OF THE CONTENT ON VIRTUAL UNDERWRITER AS IT EXISTS FROM TIME TO TIME AS IT APPLIES TO YOU, AS WELL AS ANY OTHER INSTRUCTIONS. OUR UNDERWRITING AGREEMENTS DO NOT AUTHORIZE OUR ISSUING AGENTS TO ENGAGE IN SETTLEMENTS OR CLOSINGS ON BEHALF OF STEWART TITLE GUARANTY COMPANY. THIS BULLETIN IS NOT INTENDED TO DIRECT YOUR ESCROW OR SETTLEMENT PRACTICES OR TO CHANGE PROVISIONS OF APPLICABLE UNDERWRITING AGREEMENTS. CONFIDENTIAL, PROPRIETARY, OR NONPUBLIC PERSONAL INFORMATION SHOULD NEVER BE SHARED OR DISSEMINATED EXCEPT AS ALLOWED BY LAW. IF APPLICABLE STATE LAW OR REGULATION IMPOSES ADDITIONAL REQUIREMENTS, YOU SHOULD CONTINUE TO COMPLY WITH THOSE REQUIREMENTS.