BALANCE SHEET ACCOUNTS

Our audit fieldwork will include testing of the balance sheet accounts as of the audit date.
Major focus will be as follows:

 INCOME STATEMENT ACCOUNTS

Our audit fieldwork will include testing of the income statement accounts for the period being audited. Major focus will be as follows:

LOAN FILE REVIEW

Our review of current, delinquent, and charged-off loan files will include a sample of the following types of loans (if held by the Credit Union):

  • Automobile

  • Mortgage

  • Credit card

  • Home equity

  • Unsecured signature

  • Line of credit

  • Credit Union employees and officials

  • Other secured

  • Business purpose (commercial)

  • Share secured

 INTERNAL CONTROLS AND POLICY REVIEW

Key areas covered in addition to the balance sheet areas previously mentioned include:

  • Teller operations
  • Investment purchases and sales
  • Delinquent and charged-off loans
  • Security devices and procedures
  • Foreclosures and repossessions
  • Records preservation
  • Fixed asset disposals
  • Surety bond and insurance
  • Share draft controls
  • Composition of Committees

EDP REVIEW

As part of our audit, we. will perform a review of certain areas of control over the Credit Union's on-line computer system. Specifically, we will review the physical layout of the system and the controls over it, controls over software and files, controls over computer operators, access controls, controls over computer output (reports) processing and distribution, input/output controls, supervisory controls, and security controls.

EXIT MEETING AND REPORT ISSUANCE

Upon completion of the audit fieldwork, we will meet with the Supervisory Committee and management to discuss the comments and recommendations developed. This will include an overview of financial condition and trends, financial and accounting issues, loan issues, internal control issues, data processing issues and other issues.

Our objective, barring any unforeseen circumstances, is to provide copies of our supervisory committee audit report to the Chairperson of the Supervisory Committee or the Chairperson of the Board of Directors, and the Credit Union General Manager within 120 days after the end of the supervisory committee audit date.