Oklahoma Bonding Association Practice Exam

Annual financial reporting for license holders is about showing financial integrity and regulatory oversight. Requiring an annual audited financial statement means an independent CPA reviews the books and issues an opinion that the financial statements fairly present the licensee’s financial position and results, in accordance with GAAP. This independent verification gives the regulator confidence that the licensee can meet obligations and properly handle client funds. Monthly statements would be overly burdensome and provide more frequent detail than regulators typically require; biannual reports offer less timely monitoring; being exempt is not consistent with the goal of safeguarding finances and public trust. So the true requirement is submitting an annual audited financial statement.