FIELD AUDITS

field audits: translation

Any on-site inspection of the bank's collateral may be referred to as a field audit. However the phrase is most often used to refer to on-site audits of a borrower's records related to sales, accounts receivable, accounts payable, customer records, and shipping documents. Field audits are often conducted by specially trained bank employees but may be done by internal bank auditors, external accounting firms hired by the bank, or firms specializing in this service. Written field audit reports contain significant information for secured lenders. American Banker Glossary