Examination Handbook 350P, External Audit Program, April 2002

External Audit Program EXAMINATION OBJECTIVES To determine how audit procedures, findings, and recommendations affect the scope of the planned examination. To evaluate how much the examiner can rely on the audit work to limit or supplement the examination scope. To communicate with auditors to obtain a better understanding of high-risk or complex activities of the association. To ensure that the auditor met regulatory requirements in the preparation and presentation of the audit report. To determine if the association corrected deficiencies noted by the auditors. To determine that the auditor’s client is the board of directors and not management. MONITORING AND EXAMINATION PROCEDURES LEVEL I WKP. REF. Supervisory Monitoring Procedures (Examination managers) 1. Obtain copies of the audi t report, report on system of internal control (report on internal control), engagement letter, audited financial statements, Securities and Exchange Commission (SEC) filings, and any other audit-related reports the regional office receives. (Also obtain a copy of all comments pertaining to any supervisory or compliance reviews performed by the regional accountant.) Determine the type of opinion (unqualified, qualified, adverse, or disclaimer) ren-dered by the external auditor. If the external auditor rendered other than an unqualified opinion, find out why. Exam Date: Prepared By: Reviewed By: Docket #: Office of Thrift Supervision April 2011 ...