North Dakota Administrative Code
Title 13 - Department of Financial Institutions
Article 13-03 - Credit Unions
Chapter 13-03-25 - Supervisory Committee Audits and Verifications
Section 13-03-25-04 - Requirements for verification of accounts
Universal Citation: ND Admin Code ยง 13-03-25-04
Current through Supplement No. 392, April, 2024
1. Verification obligation. The supervisory committee, at least every two years, shall cause the accounts of members to be verified against the records of the treasurer of the credit union.
2. Methods. Any ofthe following methods may be used to verify members' passbooks and accounts, as appropriate:
a. Controlled verification. A controlled
verification of one hundred percent of members' share and loan accounts.
b. Statistical method. A sampling
method which provides for:
(1) Random
selection;
(2) A sample which is
representative of the population from which it is selected;
(3) An equal choice of selecting each dollar
in the population;
(4) Sufficient
accounts in both number and scope on which to base conclusions concerning
management's financial reporting objectives; and
(5) Additional procedures to be performed if
evidence provided by confirmations alone is not sufficient.
c. Nonstatistical method. When the
verification is performed by an independent person licensed by the state, the
auditor may choose among the sampling methods set forth in subdivisions a and b
and nonstatistical sampling methods consistent with GAAS if such methods
provide for:
(1) 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;
(2) Additional procedures to be
performed by the auditor if evidence provided by confirmations alone is not
sufficient; and
(3) Documentation
of the sampling procedures used and of their consistency with GAAS, to be
provided to the commissioner of the department of financial institutions upon
request.
3. Retention of records. The supervisory committee must retain the records of each verification of members' passbooks and accounts until it completes the next verification of members' passbooks and accounts.
General Authority: NDCC 6-01-04
Law Implemented: NDCC 6-06-06
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