Credit Unions
Financial statement audits, supervisory committee audits, and CECL support for credit unions and the volunteer boards that oversee them.
Overview
Credit unions operate under a member-owned structure and a regulatory framework that shapes how they report, govern, and audit. Supervisory committees carry responsibility for making sure an appropriate audit is performed each year, and boards rely on that work to oversee risk on behalf of members. Pease Bell, a Top 200 U.S. CPA firm headquartered in Cleveland, Ohio, helps credit unions meet these responsibilities with financial statement audits, supervisory committee audits, and agreed-upon procedures designed around how credit unions actually operate.
Our teams understand member share accounts, loan portfolios, investment holdings, and the reporting credit unions file with the NCUA. We help management prepare for the current expected credit loss model, review controls over lending and deposit operations, and give supervisory committees clear communication about what we found. Because we offer audit, tax, and advisory under one roof, we can also support internal audit projects and special reviews when your committee needs them.
How We Help Credit Unions
Financial Statement Audits
Opinion audits of credit union financial statements under U.S. GAAS and GAAP, covering loans, the allowance for credit losses, investments, member shares, and the related disclosures your board and regulators review.
Supervisory Committee Audits
Audits and procedures that help your supervisory committee meet its annual audit responsibility under NCUA rules, scoped to your credit union’s size and charter, with reporting written for volunteer committee members.
CECL Implementation Support
Help evaluating pooling, loss rate methods, forecast periods, and qualitative factors under ASC 326, plus documentation that supports your allowance for credit losses at audit and exam time.
Agreed-Upon Procedures
Targeted procedures on areas such as loan files, cash and teller operations, wire transfers, or account reconciliations, reported as factual findings your committee can use to direct follow-up.
Internal Audit Support
Outsourced or co-sourced internal audit that tests controls over lending, deposits, information technology, and vendor management, giving smaller credit unions access to specialists without adding staff.
BSA Program Reviews
General reviews of Bank Secrecy Act and anti-money laundering processes, including customer due diligence, monitoring, and recordkeeping, to help identify gaps before an examination does.
Challenges We Help You Address
- ✓Meeting supervisory committee audit responsibilities with limited volunteer time
- ✓Supporting allowance for credit losses estimates under CECL
- ✓Reconciling audited figures with NCUA call report data
- ✓Testing internal controls without a full-time internal audit department
- ✓Keeping BSA and anti-money laundering processes ready for examination
Frequently Asked Questions
What is a credit union supervisory committee audit?
A supervisory committee audit is the annual audit that a federally insured credit union’s supervisory committee is responsible for obtaining under NCUA regulations. Depending on the credit union’s size and circumstances, it may be a full financial statement audit by a CPA or another type of audit permitted by the rule. Its purpose is to give the committee independent evidence that the books are accurate and member assets are protected.
Does a credit union need a CPA financial statement audit?
It depends on the credit union’s asset size, charter, and any state or insurer requirements. NCUA rules require larger federally insured credit unions to obtain an annual financial statement audit from an independent CPA, while smaller credit unions may have other options for meeting the supervisory committee audit requirement. We recommend confirming your obligations with your examiner and can help you choose a scope that fits.
How does CECL affect credit unions?
CECL, under ASC 326, requires credit unions that follow U.S. GAAP to estimate expected credit losses over the life of loans and certain other assets instead of recognizing losses only when they are probable. That changes how the allowance is calculated and documented and often requires more historical data and forecasting. We can help you evaluate methods suited to your portfolio and prepare support your auditors and examiners will expect.
What is the difference between an audit and agreed-upon procedures for a credit union?
An audit results in an opinion on whether the financial statements are fairly presented. Agreed-upon procedures do not produce an opinion. Instead, the CPA performs specific procedures the committee selects, such as testing loan files or reconciliations, and reports the factual findings. Many supervisory committees use agreed-upon procedures to supplement an audit or to look closely at higher-risk areas between audits.
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