Question

You have been engaged to conduct an audit of a credit union. Compare and contrast the various relevant sources of authoritative guidance you could follow, and why you would select one over another.

Answer 1

Authoritative guidance we should follow during audit of a credit union are:

* A credit union must prepare financial statement in accordance with GAAP which must be audited . The annual financial statements and regulatory reports must reflect all material correcting adjustments necessary to conform with GAAP .

* Federal credit union with assets of 500 million but more than 10million may obtain a financial statement , balance sheet audit.

* We must undertake the audit and verification with good faith and integrity. A reasonable number of human errors is acceptable but should not occur often enough to affect the overall result and conclusions you reach.

* Common sense requires that you properly supervise any assistants you use for tasks such as verification of members accounts or periodic cash counts

* keep all accounting data evidence available