Auditing · New Mexico
Auditing Services in New Mexico
New Mexico businesses facing NMTRD Gross Receipts Tax audits, state income tax examinations, or financial statement audit requirements need meticulous preparation of location-based GRT records and CRS-1 reconciliations.
Overview
Fintax Support Limited prepares audit-ready financial statements under US GAAP, compiles working papers reconciling gross receipts to CRS-1 filings by location, and coordinates with external auditors. We support NMTRD audit examinations with NTTC validation schedules and GRT rate verification.
Key compliance areas in New Mexico
06 areas- Gross Receipts Tax (GRT)
- CRS filings
- NM state income tax
- Secretary of State registration
- workers' comp
- local GRT rates
Regulatory framework
NMTRD routinely audits GRT returns, focusing on proper location code reporting, NTTC deduction validity, and compensating tax on out-of-state purchases. Financial audits for New Mexico entities follow US GAAP and AICPA standards. NMTRD audit periods typically cover four years of CRS-1 filings.
NMTRD (NM Taxation & Revenue Department)Key facts
- 4 yearsGRT audit periodCRS-1 filings
- US GAAPFinancial audit basiswith AICPA standards
9 specialised services
Our Auditing services in New Mexico
On this page (9)
01 / 09
Financial Statement Audits (GAAS)
Prepare for and coordinate independent financial statement audits conducted under Generally Accepted Auditing Standards (GAAS) issued by the AICPA. We assemble US GAAP financial statements, audit-ready working papers, and supporting schedules so your external CPA firm can issue an unmodified opinion efficiently — whether for New Mexico bank covenants, state contractor requirements, investor due diligence, or nonprofit board reporting.
GAAS-compliant working papers
US GAAP financial statements
Substantive testing support
New Mexico entity coordination
How it works, details and FAQsShow less
How it works
- 01
Pre-audit readiness assessment
Review prior-year audit findings, trial balance, and US GAAP compliance gaps before fieldwork begins.
- 02
Working paper preparation
Compile PBC schedules, reconciliations, and disclosure drafts aligned to the auditor's engagement letter.
- 03
Fieldwork support
Respond to auditor inquiries, provide substantiation, and resolve testing exceptions during on-site or remote fieldwork.
- 04
Report issuance coordination
Finalize management representation letter, subsequent events review, and board approval for audit report issuance.
- 01
Pre-audit readiness assessment
Review prior-year audit findings, trial balance, and US GAAP compliance gaps before fieldwork begins.
- 02
Working paper preparation
Compile PBC schedules, reconciliations, and disclosure drafts aligned to the auditor's engagement letter.
- 03
Fieldwork support
Respond to auditor inquiries, provide substantiation, and resolve testing exceptions during on-site or remote fieldwork.
- 04
Report issuance coordination
Finalize management representation letter, subsequent events review, and board approval for audit report issuance.
Independent financial statement audits under GAAS — codified in AICPA AU-C sections — provide reasonable assurance that US GAAP financial statements are free of material misstatement. For private New Mexico companies, AICPA standards apply; public company audits follow PCAOB standards, which incorporate GAAS with additional requirements. New Mexico does not generally mandate audited accounts for LLC filing with the Secretary of State, but banks, SBA lenders, state procurement agencies, and bonding companies frequently require audited US GAAP financial statements as a condition of financing or contracts. We prepare audit-ready working papers including adjusted trial balances, account reconciliations, related-party disclosures, and going-concern analyses before your external CPA firm begins fieldwork — reconciling revenue and expense accounts to NMTRD Combined Reporting System (CRS) filings where applicable. Proper preparation reduces billable audit hours, accelerates report issuance for lender covenant deadlines, and minimizes repeat findings in subsequent years.
Common questions
02 / 09
Internal Audit & Management Review
Evaluate internal controls, operational processes, and financial reporting workflows through structured internal audit and management review programs for New Mexico organizations. Internal audit identifies control weaknesses before external auditors, NMTRD examiners, or grant compliance reviewers do — reducing fraud risk, audit deficiencies, and operational inefficiencies across your NM operations.
Control environment assessment
Process walkthrough testing
Deficiency identification
Management action plans
How it works, details and FAQsShow less
How it works
- 01
Risk assessment and scoping
Identify high-risk processes, NMTRD GRT reporting controls, and US GAAP reporting areas based on your industry and size.
- 02
Control documentation and testing
Document key controls, perform walkthroughs, and test operating effectiveness over the review period.
- 03
Findings report delivery
Present internal audit findings to management and the board with severity classifications.
- 04
Remediation tracking
Monitor management's corrective actions through follow-up testing before external audit or NMTRD examination fieldwork.
- 01
Risk assessment and scoping
Identify high-risk processes, NMTRD GRT reporting controls, and US GAAP reporting areas based on your industry and size.
- 02
Control documentation and testing
Document key controls, perform walkthroughs, and test operating effectiveness over the review period.
- 03
Findings report delivery
Present internal audit findings to management and the board with severity classifications.
- 04
Remediation tracking
Monitor management's corrective actions through follow-up testing before external audit or NMTRD examination fieldwork.
Internal audit and management review services evaluate whether your New Mexico organization's controls over financial reporting and operations are designed and operating effectively. We apply the COSO Internal Control — Integrated Framework, the standard referenced by PCAOB AS 2201 for public company SOX Section 404 assessments and widely adopted by private companies for best-practice control evaluation. Our engagements include entity-level control assessment, process walkthroughs for revenue recognition under ASC 606, NMTRD Gross Receipts Tax location-code reporting controls, NTTC exemption documentation, procurement and disbursement cycles, payroll controls, and IT general controls. Findings are classified per AICPA guidance as control deficiencies, significant deficiencies, or material weaknesses — the same taxonomy external auditors use. Remediation before your GAAS financial statement audit or NMTRD examination reduces the risk of qualified opinions, scope limitations, and repeat findings that increase audit costs year over year.
Common questions
03 / 09
NM Taxation & Revenue Audit Support
Defend your New Mexico business during NMTRD Gross Receipts Tax audits, state income tax examinations, and withholding tax reviews with organized substantiation and structured response. NMTRD audits examine whether CRS-1 filings match your books — we reconstruct location-based GRT records, validate NTTC deductions, and prepare compensating tax documentation to minimize assessments and penalties under the Tax Administration Act.
NMTRD examination representation
CRS-1 reconciliation schedules
NTTC validation registers
Tax Administration Act compliance
How it works, details and FAQsShow less
How it works
- 01
Audit notice analysis
Review NMTRD examination letter, identify audit periods and issues, and establish document production timeline.
- 02
GRT record assembly
Gather source documents supporting gross receipts by location code, NTTC certificates, and CRS-1 return copies.
- 03
Examination response support
Prepare written responses, attend NMTRD interviews, and present substantiation for each proposed adjustment.
- 04
Resolution and protest
Negotiate final agreement, prepare protest to the NMTRD Hearing Officer, or pursue administrative appeal.
- 01
Audit notice analysis
Review NMTRD examination letter, identify audit periods and issues, and establish document production timeline.
- 02
GRT record assembly
Gather source documents supporting gross receipts by location code, NTTC certificates, and CRS-1 return copies.
- 03
Examination response support
Prepare written responses, attend NMTRD interviews, and present substantiation for each proposed adjustment.
- 04
Resolution and protest
Negotiate final agreement, prepare protest to the NMTRD Hearing Officer, or pursue administrative appeal.
NMTRD tax audits differ fundamentally from GAAS financial statement audits — the New Mexico Taxation and Revenue Department examines whether your CRS-1 Gross Receipts Tax returns, CIT-1 corporate income tax filings, and withholding tax remittances accurately report tax liabilities under the Tax Administration Act (NMSA 7-1-1 et seq.), not whether financial statements comply with US GAAP. NMTRD routinely audits GRT returns focusing on proper location code reporting, NTTC deduction validity, compensating tax on out-of-state purchases, and revenue classification. Audit periods typically cover four years of CRS-1 filings. We prepare location-by-location reconciliations mapping gross receipts to NMTRD-assigned GRT rates, NTTC registers with certificate validation, and compensating tax calculations before NMTRD fieldwork begins. For proposed assessments, we prepare protests under NMSA 7-1-16 and represent clients before the NMTRD Hearing Officer Division.
Common questions
04 / 09
Grant & Government Funding Compliance Audits
Prepare for Single Audit engagements and state grant compliance reviews required when your New Mexico nonprofit, tribal entity, or government organization expends $750,000 or more in federal awards or receives state appropriations subject to the Audit Act. We assemble the Schedule of Expenditures of Federal Awards (SEFA), compliance workpapers, and Audit Act 12-6-1 NMSA documentation for your external auditor.
Uniform Guidance compliance
SEFA preparation
Audit Act 12-6-1 NMSA support
$750K threshold monitoring
How it works, details and FAQsShow less
How it works
- 01
Federal and state award inventory
Catalog all federal grants, state appropriations, and pass-through awards with CFDA numbers and expenditure totals.
- 02
SEFA and compliance framework
Prepare Schedule of Expenditures of Federal Awards and map compliance requirements by major program.
- 03
Compliance evidence assembly
Organize documentation for allowable costs, procurement standards, reporting, and subrecipient monitoring.
- 04
Single Audit fieldwork support
Support auditor testing of major programs and resolve compliance findings before Form SF-SAC submission.
- 01
Federal and state award inventory
Catalog all federal grants, state appropriations, and pass-through awards with CFDA numbers and expenditure totals.
- 02
SEFA and compliance framework
Prepare Schedule of Expenditures of Federal Awards and map compliance requirements by major program.
- 03
Compliance evidence assembly
Organize documentation for allowable costs, procurement standards, reporting, and subrecipient monitoring.
- 04
Single Audit fieldwork support
Support auditor testing of major programs and resolve compliance findings before Form SF-SAC submission.
Organizations expending $750,000 or more in federal awards in a fiscal year must undergo a Single Audit under OMB Uniform Guidance at 2 CFR 200 Subpart F — combining a GAAS financial statement audit with compliance auditing of federal program requirements. New Mexico state agencies, counties, municipalities, and special districts receiving state funds are additionally subject to the Audit Act (NMSA 12-6-1 et seq.), which establishes audit requirements for governmental entities and certain recipients of state appropriations. The Schedule of Expenditures of Federal Awards (SEFA) is the cornerstone Single Audit document, listing every federal program by Catalog of Federal Domestic Assistance (CFDA) number. Auditors perform compliance testing on major programs identified through a risk-based assessment, evaluating allowability of costs under 2 CFR 200 Subpart E, procurement standards, financial reporting, and subrecipient monitoring. We prepare SEFA, Audit Act compliance workpapers, and indirect cost rate documentation before your Single Audit or state compliance examination begins.
Common questions
05 / 09
Non-Profit Audits
Prepare New Mexico nonprofits for GAAS financial statement audits required by grantors, lenders, and the New Mexico Nonprofit Corporation Act. We assemble audit-ready US GAAP financial statements, fund accounting workpapers, and board governance documentation — coordinating with your external CPA firm for 501(c)(3) organizations, community foundations, and charitable entities across the state.
Nonprofit Corporation Act compliance
Fund accounting workpapers
Board governance documentation
Single Audit readiness
How it works, details and FAQsShow less
How it works
- 01
Nonprofit audit scoping
Confirm audit requirements from grantors, lenders, and board policy; assess Single Audit threshold applicability.
- 02
Fund accounting reconciliation
Reconcile restricted and unrestricted funds, grant revenue recognition, and donor restriction compliance schedules.
- 03
Governance and disclosure preparation
Prepare related-party schedules, executive compensation documentation, and ASC 958 footnote disclosures.
- 04
External auditor fieldwork support
Respond to PBC requests, resolve testing exceptions, and coordinate audit report for board approval and grantor submission.
- 01
Nonprofit audit scoping
Confirm audit requirements from grantors, lenders, and board policy; assess Single Audit threshold applicability.
- 02
Fund accounting reconciliation
Reconcile restricted and unrestricted funds, grant revenue recognition, and donor restriction compliance schedules.
- 03
Governance and disclosure preparation
Prepare related-party schedules, executive compensation documentation, and ASC 958 footnote disclosures.
- 04
External auditor fieldwork support
Respond to PBC requests, resolve testing exceptions, and coordinate audit report for board approval and grantor submission.
New Mexico nonprofit organizations — governed by the Nonprofit Corporation Act (NMSA Chapter 53, Article 8) — frequently require GAAS financial statement audits when receiving federal grants, foundation funding, bank financing, or membership in statewide nonprofit associations. While the Act does not mandate annual audits for all nonprofits, grant agreements and lending covenants commonly require audited US GAAP financial statements prepared under ASC 958. Nonprofits expending $750,000 or more in federal awards must additionally undergo a Single Audit under OMB Uniform Guidance. We prepare fund accounting workpapers reconciling restricted, temporarily restricted, and unrestricted net assets, grant revenue recognition schedules under ASC 606, Form 990 reconciliation to audited financial statements, and board governance documentation including conflict of interest policies required under the Nonprofit Corporation Act. Proper preparation ensures your AICPA-compliant external auditor can issue an unmodified opinion supporting continued grant eligibility and donor confidence.
Common questions
06 / 09
Inventory & Fixed Asset Verification
Coordinate physical inventory counts and fixed asset verification procedures that external auditors require under GAAS for existence and valuation testing. Accurate inventory and asset records support US GAAP financial statements, IRS MACRS depreciation on Form 4562, New Mexico compensating tax documentation, and lender collateral valuations — we manage count procedures and roll-forward schedules.
Physical inventory counts
Fixed asset roll-forwards
Existence and valuation testing
Multi-location coordination
How it works, details and FAQsShow less
How it works
- 01
Pre-count planning
Design count procedures, freeze inventory movements, and prepare count sheets or scanning protocols.
- 02
Physical count execution
Supervise count teams, investigate variances, and perform recounts on material discrepancies.
- 03
Roll-forward and reconciliation
Reconcile count results to perpetual records, adjust for cutoff, and post inventory adjustments.
- 04
Auditor observation support
Coordinate external auditor attendance at counts and provide fixed asset existence confirmation schedules.
- 01
Pre-count planning
Design count procedures, freeze inventory movements, and prepare count sheets or scanning protocols.
- 02
Physical count execution
Supervise count teams, investigate variances, and perform recounts on material discrepancies.
- 03
Roll-forward and reconciliation
Reconcile count results to perpetual records, adjust for cutoff, and post inventory adjustments.
- 04
Auditor observation support
Coordinate external auditor attendance at counts and provide fixed asset existence confirmation schedules.
Inventory and fixed asset verification are core GAAS audit procedures under AICPA AU-C Section 501 for physical inventory observation and AU-C Section 540 for accounting estimates. Auditors must obtain sufficient appropriate evidence that inventory exists, is properly valued at lower of cost or net realizable value, and that fixed assets are recorded at correct cost basis with appropriate depreciation under US GAAP. For New Mexico businesses, fixed asset purchases from out-of-state vendors may trigger compensating tax under NMTRD rules — we reconcile asset additions to compensating tax reporting on CRS-1 returns alongside audit working papers. We design and supervise physical inventory counts — including cut-off testing for goods in transit — and prepare fixed asset roll-forward schedules reconciling additions, disposals, and depreciation to the general ledger and IRS Form 4562 MACRS schedules. Obsolete and slow-moving inventory reserve analyses under ASC 330 prevent overstatement that triggers audit adjustments.
Common questions
07 / 09
Review & Compilation Engagements
Obtain limited assurance through review engagements or no-assurance compilation reports when a full GAAS audit is not required for your New Mexico business. Reviews follow SSARS (Statements on Standards for Accounting and Review Services) and provide inquiry-and-analytical-procedure-based comfort — compilations present management's financial data without any assurance. We prepare financial statements and supporting workpapers for both engagement types.
SSARS review engagements
Compilation reports
Assurance level clarity
Lender and investor packages
How it works, details and FAQsShow less
How it works
- 01
Engagement scoping
Determine whether review or compilation meets your lender, investor, or board requirements — not all accept both.
- 02
Financial statement preparation
Prepare US GAAP financial statements from your adjusted trial balance with required footnote disclosures.
- 03
Review procedures or compilation assembly
Perform analytical procedures and inquiries for reviews; assemble and present data for compilations.
- 04
Accountant's report issuance
Issue SSARS-compliant accountant's review report or compilation report attached to financial statements.
- 01
Engagement scoping
Determine whether review or compilation meets your lender, investor, or board requirements — not all accept both.
- 02
Financial statement preparation
Prepare US GAAP financial statements from your adjusted trial balance with required footnote disclosures.
- 03
Review procedures or compilation assembly
Perform analytical procedures and inquiries for reviews; assemble and present data for compilations.
- 04
Accountant's report issuance
Issue SSARS-compliant accountant's review report or compilation report attached to financial statements.
Not every New Mexico business needs a full GAAS audit. Review engagements under SSARS AR-C Section 90 provide limited assurance — the accountant performs analytical procedures and management inquiries but does not test internal controls or substantiate balances to the extent required in an audit. The accountant's review report states that nothing came to their attention indicating material misstatement. Compilation engagements under AR-C Section 80 provide no assurance whatsoever — the accountant presents management's financial information in the form of financial statements without verifying accuracy or completeness. Reviews cost significantly less than audits and are accepted by many New Mexico community banks and private investors. Compilations are the lowest-cost option, suitable for internal management and some franchisor reporting. Critically, neither reviews nor compilations satisfy Single Audit, ERISA plan audit, or state Audit Act requirements — those mandate full GAAS audits under AICPA standards.
Common questions
08 / 09
External Auditor Coordination
Manage the full relationship with your external CPA firm — from engagement letter review and PBC list fulfilment through fieldwork support to audit report issuance. We act as your dedicated liaison for New Mexico entities, ensuring GAAS working papers are complete, NMTRD reconciliations are indexed, and audit timelines meet lender covenant and grant reporting deadlines.
External CPA firm liaison
PBC list management
Audit timeline management
NMTRD reconciliation coordination
How it works, details and FAQsShow less
How it works
- 01
Engagement letter review
Analyse auditor scope, fee structure, PBC expectations, and timeline against your New Mexico regulatory obligations.
- 02
PBC preparation & delivery
Compile and index all Prepared-by-Client schedules, reconciliations, and supporting documentation before fieldwork begins.
- 03
Fieldwork query management
Respond to auditor testing exceptions, provide additional evidence, and resolve open items during on-site fieldwork.
- 04
Report closing & filing
Coordinate management representation letters, board resolutions, signed audit report, and grantor or lender submission.
- 01
Engagement letter review
Analyse auditor scope, fee structure, PBC expectations, and timeline against your New Mexico regulatory obligations.
- 02
PBC preparation & delivery
Compile and index all Prepared-by-Client schedules, reconciliations, and supporting documentation before fieldwork begins.
- 03
Fieldwork query management
Respond to auditor testing exceptions, provide additional evidence, and resolve open items during on-site fieldwork.
- 04
Report closing & filing
Coordinate management representation letters, board resolutions, signed audit report, and grantor or lender submission.
Coordinating with your external CPA firm is critical to completing New Mexico financial statement audits on time and within budget. External audit firms bill primarily for fieldwork time spent resolving incomplete PBC requests and testing exceptions. We manage the full auditor relationship: reviewing engagement letters for appropriate GAAS scope under AICPA standards, fulfilling PBC lists with indexed trial balances and reconciliations, responding to fieldwork queries during audit programmes, and coordinating report issuance for lender covenant certification and grantor reporting. Our liaison ensures consistent figures across GAAS audit working papers, NMTRD CRS-1 Gross Receipts Tax reconciliations, state corporate and personal income tax returns, and withholding tax registers — reducing repeat inquiries and protecting audit timelines for SBA lending, state contractor qualification, and nonprofit board certification.
Common questions
09 / 09
Audit Readiness Assessment
Conduct a pre-audit readiness assessment before your external auditor begins fieldwork — identifying US GAAP compliance gaps, incomplete reconciliations, and missing PBC schedules across New Mexico entities. Our readiness review reduces audit delays, scope limitations, and fee overruns for GAAS financial statement audits, Single Audit engagements, and NMTRD examination substantiation.
Pre-audit gap analysis
Working paper assembly
Issue identification & remediation
Timeline & fee optimisation
How it works, details and FAQsShow less
How it works
- 01
Engagement letter review
Analyse your external auditor's scope, PBC list, and timeline against your entity's New Mexico regulatory obligations.
- 02
Readiness assessment
Evaluate trial balance completeness, US GAAP compliance, reconciliations, and prior-year audit finding status.
- 03
Remediation and preparation
Resolve identified gaps, compile indexed working papers, and draft US GAAP disclosure notes for auditor review.
- 04
Fieldwork handover
Deliver complete PBC package to your external CPA firm and support initial fieldwork queries through report issuance.
- 01
Engagement letter review
Analyse your external auditor's scope, PBC list, and timeline against your entity's New Mexico regulatory obligations.
- 02
Readiness assessment
Evaluate trial balance completeness, US GAAP compliance, reconciliations, and prior-year audit finding status.
- 03
Remediation and preparation
Resolve identified gaps, compile indexed working papers, and draft US GAAP disclosure notes for auditor review.
- 04
Fieldwork handover
Deliver complete PBC package to your external CPA firm and support initial fieldwork queries through report issuance.
Audit readiness assessment is the most effective way to control external audit costs and meet New Mexico regulatory filing deadlines — whether for GAAS financial statement audits required by lenders and investors, Single Audit engagements triggered by the $750,000 federal award threshold under OMB Uniform Guidance, Audit Act 12-6-1 NMSA compliance for governmental entities, or NMTRD examination substantiation under the Tax Administration Act. We assess your records against AICPA AU-C PBC expectations and US GAAP disclosure requirements before your external CPA firm begins fieldwork, identifying unreconciled accounts, missing related-party schedules, inadequate going-concern documentation, and NMTRD CRS-1 reconciliation gaps. Remediating issues pre-audit reduces billable hours, prevents scope limitations that delay report issuance, and ensures consistent figures across your GAAS audit, state income tax returns, and GRT reporting — protecting lender covenant timelines and grant eligibility for New Mexico nonprofits and government-funded organizations.
Common questions
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Auditing · New Mexico
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