Ga. Comp. R. & Regs. R. 80-2-6-.04 - Scope of Audit

(1) The auditor should be generally familiar with the statutes, rules, and regulations under which the credit union being audited operates, and with its charter and bylaw provisions. The annual audit should incorporate the necessary procedures to satisfy the auditor that there is compliance with the applicable requirements that might materially affect the credit union's financial position of operation.

(2) Such annual audit shall include a review of the credit union's internal controls and such other tests and reviews of the credit union's records as deemed appropriate by the auditor, including, but not limited to, verifications of the credit union's loan and deposit accounts as well as adequate testing and review of the credit union's information technology activities.

(3) Specific Requirements for the annual audit:

(a) The audit must state the method and degree of direct verification of loan and share accounts and analyze the results by schedule. The audit should indicate whether positive or negative account confirmations were used, number of confirmations mailed, number of replies received, number of undeliverable confirmations, analysis of discrepancies disclosed, and degree of follow-up confirmation for non-replies and undeliverable confirmations;

(b) The audit includes a verification of a timely and accurate cash reconciliation and an affirmative verification of investments and deposits made by the audited credit union as well as the adequacy of the internal controls over these processes;

(c) Verification of the status of funds borrowed by the audited credit union, including promissory notes and certificates;

(d) The audit must confirm that internal routines and controls were evaluated and no exceptions were found or that certain listed exceptions were noted; and

(e) The audit must set forth in sufficient detail the general scope of the audit performed.

Notes

Ga. Comp. R. & Regs. R. 80-2-6-.04

O.C.G.A. §§ 7-1-61; 7-1-657.

Original Rule was filed on October 26, 1976; effective November 15, 1976. Amended: F. June 15, 2015; eff. July 5, 2015. Amended: F. June 29, 2018; eff. July 19, 2018.