Preparing for an Uneventful Compliance Audit

BY BAMBI HELM

Examiners are raising their expectations of compliance audits. Will your credit union meet them? Doing so ensures your CU maintains its trustworthiness in the eyes of current and potential members alike. These best practices will prepare you for a stress-free compliance audit so you can keep your reputation intact.

Examiners exist to ensure the safety and soundness of your credit union. It is also their responsibility to ensure processes are in place to protect consumers. Today, regulators are turning up the heat to make sure consumers can 100 percent trust the credit unions they do business with.

“Over the span of my career, I’ve experienced countless exams and have seen the steady increase in regulations and heightened scrutiny by examiners to ensure financial institutions are in compliance with those regulations,” said Lenny Swanger, director of audit services at Centris Federal Credit Union.

COMPLIANCE AUDIT BEST PRACTICES

Audits support the credit union’s compliance commitment and effectiveness, which in turn supports the safety and soundness of the credit union.

When preparing for an audit – whether it will be conducted by your own internal personnel or an outside partner – there are three best practices that will set your auditor up for success.

  1. Establish clear expectations.
  2. Provide documentation early.
  3. Be open to findings.

Establish clear expectations.


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