NCUA - Supervisory Committee Audits

GuidanceNational Credit Union Administration (NCUA)General Information

The National Credit Union Administration (NCUA) requests public comment on whether and how to modify its Supervisory Committee audit rules to require credit unions to obtain an “attestation on internal controls” in connection with their annual audits; to identify and impose assessment and attestation standards for such engagements; to impose minimum qualifications for Supervisory Committee members; and to identify and impose a standard for the independence required of State-licensed, compensated auditors.

In 1998, the Credit Union Membership Access Act (“CUMMA”), Pub. L. No. 105¬219, 112 Stat. 913 (1998), amended the Federal Credit Union Act to require credit unions having assets of $10 million or more to follow generally accepted accounting principles (“GAAP”) in all reports and statements filed with the NCUA Board. 12 U.S.C. 1782(a)(6)(C). CUMMA further required credit unions having assets of $500 million or more to obtain an annual independent audit of its financial statements (“financial statement audit”) performed in accordance with generally accepted auditing standards (“GAAS”) by an independent certified public accountant or public accountant licensed by the appropriate State or jurisdiction. 12 U.S.C. 1782(a)(6)(D).

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