Running an audit can be stressful and is always time-consuming. More planning and structure at the beginning improve efficiency in subsequent stages.
We created our credit union audit checklist to give auditors a head start in both annual NCUA exams and audits. This is especially critical if you’re short-staffed or your business units have limited bandwidth.
Our checklist helps you prepare with four simple steps:
- Addressing prior audit results
- Defining changes in management and procedures since your last audit
- Identifying key people and developing a paper trail of accountability
- Identifying and easing the access to important materials and documents
You may download the checklist PDF here: https://www.redboard.com/credit-union-audit-checklist
Step One: Address Prior Audit Results
The first step is to review your audit history. What happened last time? What should you expect this time? Reviewing past results is key to ongoing success.
We include a checklist for “observations” under step one. This is a good place for you to keep track of things your auditors noted in their last audit. This box allows you to track issues that don’t have to be changed for your next audit, but that may improve your process.
Documenting those odd procedures or calculations will help you better define your procedures moving forward into your next audit. As the years pass, you’ll have a clear progression of identifying and correcting those observations. Reviewing your previous findings, observations, and other issues will ensure that things go smoothly and help you avoid repeat findings.
Sometimes all it takes is a reminder to chip away at those menial tasks. Before you know it, you’re ready for step two.
Step Two: Define the Changes Since Your Last Audit
Did anything change since your last audit? Did someone get promoted? Did someone else leave? Have regulations changed? Is there anything that you may have to do differently this time?
Under step two, you’ll document the changes in management, products and procedures, and guidance. You’ll still have room for your own notes, too.
The “changes” in this section refer to the management of specific, audit-related tasks. Knowing who did what last year means you’ll have a quick reference point for who to email when you have a question. It means you can see at a glance who is accountable for it now.
This part of the checklist makes the succession of accountability clear and easy to follow.
The same principle applies to the change in procedures. Document everything in one place for quick reference and absolute clarity.
With space to outline your guidance and a customizable “other” box, you’ll be confident that you’ve afforded yourself clarity and direction.
Step Three: Identify Key People
Make a quick note of who will be involved and what role they’ll play. Seeing who was involved last time will help if and when you need to track down historical documents or answers.
Step Four: Identify Important Materials and Documents
Keeping track of paperwork is a hassle, even in the digital age. Between mass emails, private emails, and the occasional fax or print, things get disorganized and buried.
By identifying important materials and documents, you’ll know what you need and where to find them. This step will also help you track of accountability about who is responsible for which materials.
To take this a step further, the Redboard platform automatically tracks who has accessed each document and which changes were made by that user.
Final Thoughts
Audits are an undertaking. But they can be made simpler this year if you use our checklist—whether you're pursuing an outsourced, internal, or NCUA audit/exam, this checklist will help you prepare.
It’s not exhaustive, but it’s been a proven framework for success for the credit unions that have worked with us already.
FREE: Audit Checklist for Credit Unions
4 key principles and 9 questions to jumpstart your audit planning. From leading credit unions.Get the new credit union audit checklist here.
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