A: Similar to their business clients, most PEOs are private entities that do not have public financial statements. Nonetheless, clients are advised to check a PEO’s references, reputation, and financial background. Ask if the PEO has audited financial statements, obtain credit references, and conduct due diligence. In states where required, make certain that the PEO is duly licensed or registered. Many PEOs provide clients an independent CPA’s attestation regarding the PEO’s audited financial statements and payment of taxes and benefit plans.