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 13-03-25-08 - Statutory audit remedies for credit unions

1. Audit by alternative licensed person. The state credit union board may compel a credit union to obtain a supervisory committee audit which meets the minimum requirements of section 13-03-25-03 and which is performed by an independent person who is licensed by the state for any fiscal year in which any of the following three conditions is present:

2. Financial statement audit required. The state credit union board may compel a credit union to obtain a financial statement audit performed in accordance with GAAS by an independent person who is licensed by the state, even if such audit is not required by section 13-03-25-03, for any fiscal year in which the credit union has experienced serious and persistent recordkeeping deficiencies as defined in subsection 3. The objective of a financial statement audit performed under this subsection is to reconstruct the records of the credit union sufficiently to allow an unqualified or, if necessary, a qualified opinion on the credit union's financial statements. An adverse opinion or disclaimer of opinion should be the exception rather than the norm.

3. Serious and persistent recordkeeping deficiencies defined. A recordkeeping deficiency is serious if the state credit union board reasonably believes that the board of directors and management of the credit union have not timely met financial reporting objectives and established practices and procedures sufficient to safeguard members' assets. A serious recordkeeping deficiency is persistent when it continues beyond a usual, expected, or reasonable period of time.