Current through Register Vol. 24-18, September 15, 2024
(1)RCW
31.12.545 authorizes the acceptance, in the
director's discretion, of independent audit reports in lieu of the examination
required thereunder. In order to be considered for acceptance in lieu of an
examination, an audit must meet the following conditions:
(a) The audit was performed by accountants
who have demonstrated to the director extensive knowledge of the examination
procedures and techniques utilized by the division of credit unions;
(b) The scope of the audit follow, but is not
limited to, the scope of examinations conducted by the division, including a
compliance review;
(c) The audit
includes a verification of loan and share accounts;
(d) The audit includes a cash reconciliation,
including an adequately documented physical cash count, and also includes an
affirmative verification of investments and deposits made by the audited credit
union;
(e) Verification of the
status of funds borrowed by the audited credit union, including promissory
notes and certificates;
(f) The
audit sets forth such comments as are appropriate in a positive format
specifying corrective action recommended and schedule for completing such
corrective action;
(g) The audit
was performed not less than nine months after and not more than fifteen months
after the last examination by the division or an audit which was accepted in
lieu thereof.
(h) All working
papers as well as the accountant's report, internal control report, and any
other documents associated with the audit are made available to the
director.
(2) Select
portions of an audit may be utilized by division examiners in conducting a
particular examination if:
(a) The date of the
audit corresponds reasonably with the date of the examination; and
(b) That portion of the audit being utilized
is supported by working papers which substantially correspond to examination
work papers utilized by the division.
Statutory Authority: RCW 42.320.040 [43.320.040] and
31.12.535. 96-17-071, §
208-444-010, filed 8/20/96,
effective 9/20/96. 96-06-011, recodified as §
208-444-010, filed 2/23/96,
effective 6/1/96. Statutory Authority: RCW 31.12.320. 83-05-022 (Order 83-1),
§ 419-44-010, filed 2/9/83.
