Title Agencies
FAQ's Annual Review of Title Insurance Agent Escrow Accounts
Q. Why do I need an audit?
A. Required by Ohio Legislation. Ohio Congress passed HB 157 and SB 185 into law on December 7, 2007.
Q. When is the due date for the audit?
A. The audit report must be completed each year by December 31.
Q. What period of time does the audit cover?
A. All audits are for the twelve month period of September 1 through August 31.
Q. What qualifications must the reviewer have?
A. The audit must be completed by a Certified Public Accountant who is not an employee of the agency or any affiliated entities associated with the title agency or its owners.
Q. What type of information is needed for the audit?
A. The auditor shall review the agency's three-way bank reconciliations for all escrow accounts. This process will involve reviewing all deposits, disbursements and open escrow trial balance for two monthly periods during the 12 month period ending August 31.
Q. What is a three-way bank reconciliation?
A. A three-way reconciliation is performed monthly to reconcile the book balance, bank balance and escrow trial balance. The purpose of the reconciliation is to locate any errors and to discover any shortages.
Q. How much will the audit cost?
A. The cost will depend upon how many escrow accounts the company has, the number of closings per year and if your documentation is in good order. Estimated fees should range from $1,000 to $1,500 per escrow bank account. Upon additional knowledge of your company and number of transactions, a more detail fee can be determined.
Q. Why should I choose S.J. Meyer & Associates, Inc., to perform the compliance audit?
A. We have dedicated a portion of our staff to handle just compliance audits. We are up to date on all new developments and procedures for the preparing compliance audits. The size of our firm allows us to be available to you to answer any questions and help you with the audit process. We will personally discuss and review any recommendations with the appropriate personnel discovered during the audit.
Q. When should I get the information ready for the audit?
A. Once we've scheduled a date to perform the audit, we will provide you with a complete listing of items necessary for the audit. We will give you plenty of time to gather the information before we visit your office.
Q. How early should I schedule an appointment for the audit?
A. As soon as possible, since this will make sure your compliance audit is prepared by the due date of December 31. Also, it will allow your company to have plenty of time to be in contact with our firm to make sure all information requested will be available during the audit.
Q. What type of report is prepared by the CPA?
A. A report is issued by our CPA detailing the documents reviewed and any items of specific findings. The title insurance agent shall provide a copy of this report to each title company it represented during any portion of the review period and to each it represents as of the date the report is issued within 14 days of the completion of the audit.