Auditing, compliance
& consulting services

Supervisory Committee Audits

We provide independent audit services designed to assist credit unions with their Supervisory Committee audit responsibilities.

Our procedures may address areas such as:

• Cash and cash equivalents
• Investments
• Loans
• Shares and deposits
• Fixed assets
• Liabilities
• Capital and equity
• Income and expenses
• Internal controls
• Member account verification
• Other areas based on the engagement scope and risk profile

Focus: Our goal is to provide clear documentation of procedures performed, exceptions identified, and recommendations for corrective action.

ACH Compliance Audits

ACH activity presents operational, compliance, and fraud risks that require effective policies and controls.

Our ACH reviews may include:

• ACH policies and procedures
• ACH risk assessments
• Originations
• Returns
• Exceptions
• Authorizations
• Monitoring
• Fraud controls
• Employee training
• Documentation
• Nacha compliance considerations
• Corrective action and follow-up

Focus: We focus not only on whether policies exist, but also on whether procedures are being followed and documented.

BSA Compliance Audits

Our BSA compliance reviews are designed to evaluate the credit union’s policies, procedures, controls, and compliance processes.

Areas may include:

• BSA/AML policies
• Risk assessments
• Customer/member identification procedures
• Customer due diligence
• Beneficial ownership
• Transaction monitoring
• Suspicious activity reporting
• Currency transaction reporting
• OFAC controls
• Training
• Independent testing
• Recordkeeping

Focus: The scope can be tailored to the credit union’s size, products, services, and risk profile.

SAFE Act Compliance Audits

Our SAFE Act reviews may evaluate applicable mortgage loan originator registration requirements, policies, procedures, and supporting documentation.

Focus: We help credit unions identify potential documentation or compliance concerns and provide practical recommendations.

Lending Audits

Lending is one of the most significant areas of risk for many credit unions.

Our lending audits may include reviews of:

• Loan applications
• Underwriting
• Approval authority
• Loan documentation
• Interest rates
• Collateral
• Insurance
• Credit reports
• Payment history
• Delinquency
• Collection efforts
• Charge-offs
• Repossessions
• Insider loans
• Concentrations
• Policy compliance

Focus: Our objective is to identify exceptions and evaluate whether lending controls are operating as intended.

Member Account Verification

Independent member account verification procedures can provide an additional level of assurance regarding member records.

Depending upon the engagement, procedures may include verification of:

• Share balances
• Loan balances
• Loan payments
• Interest rates
• Dividend rates
• Account ownership
• Other selected account information

Focus: Exceptions identified through verification procedures are communicated for appropriate follow-up.

Fraud Reviews & Investigations

When concerns arise, a focused and objective review can help determine what occurred and identify potential control weaknesses.

Fraud review procedures may include:

• Transaction analysis
• General ledger analysis
• Account activity
• Employee accounts
• Corporate credit card activity
• Vendor transactions
• ACH activity
• Wire activity
• Cash activity
• Loan transactions
• Supporting documentation
• Policy compliance
• Internal control weaknesses

Focus: Each engagement is tailored to the circumstances and objectives identified by the credit union.

Internal Audit Reviews

A strong internal audit program can help management and the Supervisory Committee identify issues before they become larger problems.

FSG MISSISSIPPI LLC can provide quarterly or periodic internal audit reviews addressing selected operational, accounting, compliance, or risk areas.

Focus: Reviews can be scheduled throughout the year to provide ongoing oversight rather than concentrating all audit activity into a single period.

Agreed-Upon Procedures

Some credit unions need a focused review of a specific issue rather than a broad audit.

Our Agreed-Upon Procedures services can be tailored to specific objectives established with the credit union.

Examples may include:

• Specific account reviews
• Transaction testing
• Internal control testing
• Fraud-related procedures
• Loan portfolio testing
• General ledger testing
• Vendor reviews
• Cash testing
• Specialized compliance procedures

Focus: The procedures performed and the reporting are established based on the engagement.