Fintax Support Limited

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.

New Mexico
NMTRD (NM Taxation & Revenue Department) Compliant
9 Specialized Services

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. 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.

Auditing services in New Mexico

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)

Our Auditing Services in New Mexico

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 β€” whether for New Mexico bank covenants, state contractor requirements, investor due diligence, or nonprofit board reporting.

GAAS-compliant working papers

Trial balances, lead schedules, and flux analyses indexed to AICPA AU-C standards for efficient fieldwork.

US GAAP financial statements

Balance sheet, income statement, cash flows, and footnote disclosures prepared before auditor engagement.

Substantive testing support

PBC schedules prepared for cash, revenue, receivables, and payables testing per audit program requirements.

New Mexico entity coordination

Single point of contact reconciling US GAAP accounts to NMTRD CRS-1 GRT filings and state income tax returns.

How It Works

1

Pre-audit readiness assessment

Review prior-year audit findings, trial balance, and US GAAP compliance gaps before fieldwork begins.

2

Working paper preparation

Compile PBC schedules, reconciliations, and disclosure drafts aligned to the auditor's engagement letter.

3

Fieldwork support

Respond to auditor inquiries, provide substantiation, and resolve testing exceptions during on-site or remote fieldwork.

4

Report issuance coordination

Finalize management representation letter, subsequent events review, and board approval for audit report issuance.

Independent financial statement audits under GAAS β€” codified in AICPA AU-C sections β€” 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 β€” 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

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 β€” reducing fraud risk, audit deficiencies, and operational inefficiencies across your NM operations.

Control environment assessment

COSO framework evaluation of entity-level controls, risk assessment, and monitoring activities.

Process walkthrough testing

Transaction-level walkthroughs for revenue, GRT reporting, procurement, payroll, and treasury cycles documented with evidence.

Deficiency identification

Control deficiencies classified as deficiencies, significant deficiencies, or material weaknesses per AICPA guidance.

Management action plans

Remediation roadmaps with ownership assignments and timelines for each identified control gap.

How It Works

1

Risk assessment and scoping

Identify high-risk processes, NMTRD GRT reporting controls, and US GAAP reporting areas based on your industry and size.

2

Control documentation and testing

Document key controls, perform walkthroughs, and test operating effectiveness over the review period.

3

Findings report delivery

Present internal audit findings to management and the board with severity classifications.

4

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 β€” 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 β€” 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

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 β€” 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

Organized response to NMTRD audit notices covering GRT, corporate income tax, withholding, and compensating tax.

CRS-1 reconciliation schedules

Location-by-location gross receipts reconciled to general ledger and CRS-1 returns for auditor review.

NTTC validation registers

Non-Taxable Transaction Certificate registers prepared with expiration tracking and deduction substantiation.

Tax Administration Act compliance

Recordkeeping and protest procedures aligned to NMSA 7-1-1 et seq. Tax Administration Act requirements.

How It Works

1

Audit notice analysis

Review NMTRD examination letter, identify audit periods and issues, and establish document production timeline.

2

GRT record assembly

Gather source documents supporting gross receipts by location code, NTTC certificates, and CRS-1 return copies.

3

Examination response support

Prepare written responses, attend NMTRD interviews, and present substantiation for each proposed adjustment.

4

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 β€” 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

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

2 CFR 200 Subpart F compliance requirements mapped to your federal award programs and cost principles.

SEFA preparation

Schedule of Expenditures of Federal Awards compiled by program and CFDA number for auditor testing.

Audit Act 12-6-1 NMSA support

State and local government audit documentation aligned to New Mexico Audit Act requirements.

$750K threshold monitoring

Federal expenditure tracking throughout the year to determine Single Audit applicability before year-end.

How It Works

1

Federal and state award inventory

Catalog all federal grants, state appropriations, and pass-through awards with CFDA numbers and expenditure totals.

2

SEFA and compliance framework

Prepare Schedule of Expenditures of Federal Awards and map compliance requirements by major program.

3

Compliance evidence assembly

Organize documentation for allowable costs, procurement standards, reporting, and subrecipient monitoring.

4

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 β€” 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

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 β€” coordinating with your external CPA firm for 501(c)(3) organizations, community foundations, and charitable entities across the state.

Nonprofit Corporation Act compliance

Governance and financial reporting documentation aligned to NMSA Chapter 53 Article 8 nonprofit requirements.

Fund accounting workpapers

Restricted, temporarily restricted, and unrestricted net asset schedules reconciled to US GAAP presentation.

Board governance documentation

Conflict of interest policies, Form 990 reconciliation, and donor restriction compliance organized for audit.

Single Audit readiness

Federal award expenditure tracking and SEFA preparation when the $750,000 Uniform Guidance threshold applies.

How It Works

1

Nonprofit audit scoping

Confirm audit requirements from grantors, lenders, and board policy; assess Single Audit threshold applicability.

2

Fund accounting reconciliation

Reconcile restricted and unrestricted funds, grant revenue recognition, and donor restriction compliance schedules.

3

Governance and disclosure preparation

Prepare related-party schedules, executive compensation documentation, and ASC 958 footnote disclosures.

4

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 β€” governed by the Nonprofit Corporation Act (NMSA Chapter 53, Article 8) β€” 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

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 β€” we manage count procedures and roll-forward schedules.

Physical inventory counts

Count procedures designed and supervised per AICPA guidance with auditor observation coordination.

Fixed asset roll-forwards

Additions, disposals, transfers, and depreciation reconciled to general ledger and Form 4562 schedules.

Existence and valuation testing

Cutoff testing, obsolete inventory reserves, and lower-of-cost-or-market analysis prepared for auditors.

Multi-location coordination

Inventory counts synchronized across warehouses, retail locations, and New Mexico GRT location jurisdictions.

How It Works

1

Pre-count planning

Design count procedures, freeze inventory movements, and prepare count sheets or scanning protocols.

2

Physical count execution

Supervise count teams, investigate variances, and perform recounts on material discrepancies.

3

Roll-forward and reconciliation

Reconcile count results to perpetual records, adjust for cutoff, and post inventory adjustments.

4

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 β€” we reconcile asset additions to compensating tax reporting on CRS-1 returns alongside audit working papers. We design and supervise physical inventory counts β€” including cut-off testing for goods in transit β€” 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

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 β€” compilations present management's financial data without any assurance. We prepare financial statements and supporting workpapers for both engagement types.

SSARS review engagements

AR-C Section 90 reviews with analytical procedures and management inquiries β€” limited assurance reported.

Compilation reports

AR-C Section 80 compilations presenting management's financial data with no assurance β€” clearly disclosed.

Assurance level clarity

Review provides limited assurance; compilation provides none β€” engagement letter sets expectations upfront.

Lender and investor packages

Financial statements formatted for New Mexico banks and investors who accept review or compilation in lieu of audit.

How It Works

1

Engagement scoping

Determine whether review or compilation meets your lender, investor, or board requirements β€” not all accept both.

2

Financial statement preparation

Prepare US GAAP financial statements from your adjusted trial balance with required footnote disclosures.

3

Review procedures or compilation assembly

Perform analytical procedures and inquiries for reviews; assemble and present data for compilations.

4

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 β€” 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 β€” 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 β€” those mandate full GAAS audits under AICPA standards.

Common Questions

External Auditor Coordination

Manage the full relationship with your external CPA firm β€” 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

Single point of contact managing communications, PBC delivery, and query resolution with your audit firm.

PBC list management

Structured tracking and fulfilment of auditor-provided Prepared-by-Client schedules indexed to AICPA AU-C requirements.

Audit timeline management

Milestone planning to meet lender covenant deadlines, grant reporting dates, and board certification timelines.

NMTRD reconciliation coordination

Consistent figures across GAAS working papers, CRS-1 GRT filings, and state income tax returns for auditor review.

How It Works

1

Engagement letter review

Analyse auditor scope, fee structure, PBC expectations, and timeline against your New Mexico regulatory obligations.

2

PBC preparation & delivery

Compile and index all Prepared-by-Client schedules, reconciliations, and supporting documentation before fieldwork begins.

3

Fieldwork query management

Respond to auditor testing exceptions, provide additional evidence, and resolve open items during on-site fieldwork.

4

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 β€” reducing repeat inquiries and protecting audit timelines for SBA lending, state contractor qualification, and nonprofit board certification.

Common Questions

Audit Readiness Assessment

Conduct a pre-audit readiness assessment before your external auditor begins fieldwork β€” 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

Structured checklist against AICPA AU-C PBC requirements, US GAAP disclosure standards, and your auditor's engagement letter.

Working paper assembly

Trial balance, lead schedules, reconciliations, and flux analyses prepared and indexed before fieldwork begins.

Issue identification & remediation

Compliance gaps, unreconciled balances, and disclosure deficiencies flagged with corrective action plans.

Timeline & fee optimisation

Audit milestone planning to meet lender deadlines, Single Audit $750K reporting dates, and NMTRD filing obligations.

How It Works

1

Engagement letter review

Analyse your external auditor's scope, PBC list, and timeline against your entity's New Mexico regulatory obligations.

2

Readiness assessment

Evaluate trial balance completeness, US GAAP compliance, reconciliations, and prior-year audit finding status.

3

Remediation and preparation

Resolve identified gaps, compile indexed working papers, and draft US GAAP disclosure notes for auditor review.

4

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 β€” 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 β€” protecting lender covenant timelines and grant eligibility for New Mexico nonprofits and government-funded organizations.

Common Questions

Frequently Asked Questions

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