(1)
Your
credit union must be audited annually for each fiscal year. The
audit must
cover the period elapsed since the prior annual
audit. The requirements differ
based on the
credit union's total asset size, as described in 209 CMR
43.05(1)(a) through (c).
(a) If your
credit
union has less than $5,000,000 in total assets, the
Auditing Committee can
choose to either:
1. have the audit performed
by an independent certified public accountant;
2. conduct an Auditing Committee Review;
or
3. engage a
qualified individual
other than a certified public accountant to conduct such a review.
If you choose to conduct an Auditing Committee Review, in all
cases the review shall follow, at a minimum, the procedures specified in the
NCUA Supervisory Committee Guide for Federal Credit Unions. Each of your credit
union's annual audits shall, at a minimum, test the credit union's assets,
liabilities, equity, income, and expenses for existence, proper cut off,
valuations, ownership, disclosures and classification, and internal
controls.
(b) If
your credit union has between $5,000,000 and $50,000,000 in total assets, the
annual audit requirements described above for those credit unions under
$5,000,000 in total assets apply. However, your credit union must have an audit
performed by an independent certified public accountant at least every three
years.
(c) If your credit union has
greater than $50,000,000 in total assets, you must have an audit performed by
an independent certified public accountant annually.
(2) During the course of such
audit, the
Auditing Committee shall make themselves reasonably available for consultation
with the
qualified individual conducting the
audit. At the conclusion of the
audit, the
Auditing Committee shall review the
audit report prepared by the
qualified individual. Operating management of the
credit union may also be
present for the purpose of responding to specific questions raised by the
audit
report. It should be emphasized that the
qualified individual shall report only
to the
Auditing Committee, and not to the management of the
credit union. The
Auditing Committee shall report the findings of the annual
audit, including
significant deficiencies and material weaknesses, to the board of directors of
the
credit union upon completion of the
audit. The written report shall be
available for review by any examiner of the
Commissioner. The
Auditing
Committee shall ensure the timely and adequate completion of the annual
audit
or
Auditing Committee Review under GAAS auditing procedures. The annual
audit
required by
209 CMR
43.03 shall constitute the annual
audit
required by M.G.L. c. 171, § 16.
(3) A duly licensed certified public
accountant or qualified individual, performing audits for the Auditing
Committee, must be independent of the credit union's employees; members of the
board of directors, auditing and credit committees or the credit union's loan
officers; and members of their immediate families. Such auditors shall not be
members of the credit union.
