Four stages of a compliance audit

first_imgA robust internal compliance audit program limits exposure to costly litigationby: David A. ReedA compliance audit is simply a comprehensive review of how your credit union adheres to regulatory requirements and related policies the board adopts.The compliance audit program is an annual review with a defined scope that reviews policies, procedures, training materials, staffing, forms, and work samples. It concludes with a report of significant findings, conclusions, and recommendations.The process certainly should include reporting back to the board or a designated committee.A successful compliance audit program consists of four stages:1. PlanningThe planning stage is perhaps the most important as it creates the roadmap for the entire audit process. The schedule and coverage of the audit program depends on the fuzzy, yet often-used, phrase, “size and complexity” of your operation.You must customize your program based on assets, products, and delivery methods. A detailed review of prior audits, examinations, and current risk assessment will assist you in determining the priority of your individual audits.The audit scope should include previous audit and examination findings, requirements, new product channels, and self-identified high-risk areas.Senior management must impress upon departments the importance of cooperation and timeliness. The staff member charged with conducting the audit needs to coordinate among all operational areas and present an item-request list to each audited area with sufficient time for review and production. continue reading » 2SHARESShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblrlast_img

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