DFI-CU 73.07(2)(b)
(b) A sample which is representative of the population from which it was selected.
DFI-CU 73.07(2)(d)
(d) Sufficient accounts in both number and scope on which to base conclusions concerning management's financial reporting objectives.
DFI-CU 73.07(2)(e)
(e) Additional procedures to be performed if evidence provided by confirmations alone is not sufficient.
DFI-CU 73.07(3)
(3) Non-statistical. When verification is performed by an independent state-licensed person, the auditor may choose among the sampling methods set forth in
subs. (1) and
(2), and non-statistical sampling methods consistent with GAAS, if the sampling methods include all of the following:
DFI-CU 73.07(3)(a)
(a) Sufficient accounts in both number and scope on which to base conclusions concerning management's financial reporting objectives to provide assurance that the general ledger accounts are fairly stated in relation to the financial statements taken as a whole.
DFI-CU 73.07(3)(b)
(b) Additional procedures to be performed by the auditor if evidence provided by confirmations alone is not sufficient.
DFI-CU 73.07(3)(c)
(c) Documentation of the sampling procedures used and of their consistency with GAAS. The documentation shall be provided to the director or NCUA, or both, upon request.
DFI-CU 73.07(4)
(4) Retention of records. The records of each verification of member passbooks and accounts shall be retained by the credit union until the next verification of member passbooks and accounts is completed.
DFI-CU 73.07 History
History: CR 02-133: cr.
Register February 2004 No. 578, eff. 3-1-04.
DFI-CU 73.08(1)(1)
Unrelated to officials. A compensated auditor who performs an audit on behalf of a credit union shall not be related by blood or marriage to any management employee or loan officer, or any member of the board of directors, audit committee, supervisory committee or credit committee of that credit union.
DFI-CU 73.08(2)
(2) Engagement letter. The engagement of a compensated auditor to perform all or a portion of the scope of an annual audit requirement shall be evidenced by an engagement letter. The engagement letter shall be signed by the compensated auditor and acknowledged by the audit committee, supervisory committee or board prior to commencement of the engagement.
DFI-CU 73.08(3)(d)
(d) Specify the rate of or total compensation to be paid for the audit.
DFI-CU 73.08(3)(e)
(e) Provide that the compensated auditor shall, upon completion of the engagement, deliver a written report of the audit and provide notice in writing, either within the report or communicated separately, of any internal control reportable conditions, irregularities and illegal acts which come to the compensated auditor's attention during the normal course of the audit. Notice is not required if there are no reportable conditions, irregularities or illegal acts.
DFI-CU 73.08(3)(f)
(f) Specify a target date for delivery of the written reports, such target date not to exceed 120 days from the date of the calendar or fiscal year-end audit, or period covered, unless the credit union obtains a waiver from the director.
DFI-CU 73.08(3)(g)
(g) Certify that the director or NCUA staff, or both, or their designated representatives, shall be provided unconditional access to the complete set of original working papers, either at the offices of the credit union or at a mutually agreed upon location, for purposes of inspection.
DFI-CU 73.08(3)(h)
(h) Acknowledge that working papers shall be retained for a minimum of three years from the date of the written audit report.
DFI-CU 73.08(4)
(4) If the engagement is to perform a supervisory committee guide audit, as set forth in
s. DFI-CU 73.06 (1) (c), the engagement letter shall certify that the audit shall address the complete scope of that engagement unless otherwise noted.
DFI-CU 73.08(5)
(5) If the engagement is to perform a supervisory committee guide audit, as set forth in
s. DFI-CU 73.06 (1) (c), which will exclude any item required by the applicable section of the guide, the engagement letter shall do all of the following:
DFI-CU 73.08(5)(b)
(b) State that because of any exclusions, the resulting audit alone will not fulfill the scope of a supervisory committee audit.
DFI-CU 73.08(5)(c)
(c) State that the credit union shall remain responsible for fulfilling the scope of a supervisory committee audit with respect to the excluded items.
DFI-CU 73.08 History
History: CR 02-133: cr.
Register February 2004 No. 578, eff. 3-1-04.
DFI-CU 73.09(1)(1)
Audit report. Upon completion of a written audit report, the person completing the report shall verify that the audit was performed and reported in accordance with the terms of the engagement letter. The report shall be submitted to the board of directors. A summary of the results of the audit shall be presented to the members of the credit union orally or in writing at the next annual meeting of the credit union. If a member so requests, access to the full audit report shall be provided. Upon request by the office of credit unions or NCUA, or both, the credit union shall provide a copy of each of the audit reports it receives or produces.
DFI-CU 73.09(2)
(2) Working papers. A set of working papers that supports each audit shall be prepared and maintained by the credit union or auditor, or both. Upon request by the office of credit unions or NCUA, or both, the credit union shall provide unconditional access to the working papers at the offices of the credit union or at a mutually agreeable location for purposes of inspecting such working papers.
DFI-CU 73.09 History
History: CR 02-133: cr.
Register February 2004 No. 578, eff. 3-1-04.
DFI-CU 73.10
DFI-CU 73.10
Sanctions. The office of credit unions may order an independent audit at the credit union's expense if the annual audit requirement has not been met or the office of credit unions finds an annual audit to be unsatisfactory.
DFI-CU 73.10 History
History: CR 02-133: cr.
Register February 2004 No. 578, eff. 3-1-04.
