We are reminded frequently about the three Cs of surety underwriting and how
fundamental these factors are to quality underwriting of credit. But there is really a fourth C that is understood by most as being equally important to account quality. That is the certified public accountant (CPA) firm that issues the audit or review opinion on the customer’s financial statements that are core to the contractor’s surety capacity.
More than ever, sureties are underwriting their clients’ CPAs.
Financial statements of contractors are the principal source of information in the surety underwriting process, and their contents can make or break a surety program.