Based upon a recommendation made by NCUA’s Office of Inspector General, NCUA has updated its policies regarding how and when audit reports are reviewed by examiners. The policy change will affect all federally insured credit unions. Going forward, expect examiners to request that audit reports prepared by external auditors be sent directly to the examiner from the auditor that completed the audit. In addition to obtaining the audit report directly from the external auditor, other acceptable delivery methods include:
- Using a secure portal that verifies and validates the original document source and ensures the audit report submitted to NCUA is authentic and unaltered; and
- Conducting physical inspection of the audit report by our examiners at a mutually agreeable time and place.
In the past, audit reviews occurred during the annual examination process but given the extended examination cycle for some credit unions, an examination may not transpire on an annually basis. To ensure that a timely review of audit reports continue, examiners will obtain the audit report by using an acceptable delivery method, as described above.
By: Joni Senkpeil, VP Compliance Solutions