Credit Union Supervisory Audit Services — DC, Maryland & Virginia
Quick Answer: What is a credit union supervisory audit and when is it required?
NCUA Part 715 requires all federally insured credit unions to have an annual supervisory audit. Credit unions under $500M in assets use an internal or CPA AUP (agreed-upon procedures) supervisory audit costing $3,000–$12,000. Credit unions over $500M require a full CPA financial statement audit costing $15,000–$50,000. State-chartered credit unions follow state regulator requirements.
Key Credit Union Audit Terms
ALLL / ACL
The Allowance for Loan and Lease Losses (ALLL) — now called Allowance for Credit Losses (ACL) under CECL — is the reserve for estimated loan losses. NCUA examines ACL methodology closely; an underfunded allowance is one of the most significant examination findings a credit union can receive.
Net Worth Ratio
Credit unions are required to maintain minimum net worth ratios to be classified as 'well capitalized' under NCUA's Prompt Corrective Action framework. A well-capitalized credit union maintains a net worth ratio of 7% or more. Net worth ratio is a primary focus of any credit union supervisory audit.
Share Insurance Fund
The National Credit Union Share Insurance Fund (NCUSIF) insures member deposits at federally insured credit unions up to $250,000. Each credit union's NCUSIF deposit is 1% of insured shares. NCUA uses supervisory audit results to assess risk to the Share Insurance Fund.
Credit Union Audit Challenges We Address
NCUA Part 715 compliance is mandatory — non-compliance triggers examination findings and can affect federal deposit insurance standing
Many smaller credit unions rely on volunteer supervisory committee members with no audit training — increasing the risk of missed findings
Board and supervisory committee members are personally accountable for oversight failures — a documented annual audit provides protection
Loan portfolio quality, delinquency tracking, and ALLL/ACL methodology are top NCUA findings and require expert review
BSA/AML compliance testing is increasingly expected in supervisory audit procedures — gaps can result in FinCEN civil monetary penalties
Credit Union Audit Services
From AUP engagements for small credit unions to full GAAS audits for larger institutions, we provide the independent oversight NCUA and your members expect.
NCUA Part 715 Supervisory Audit
Full NCUA Part 715-compliant supervisory committee audit covering account verification, internal control review, cash and investment reconciliation, and board reporting — designed to satisfy NCUA examination expectations.
AUP Engagement for Smaller Credit Unions
Agreed-upon procedures engagement for credit unions under $500M fulfilling Part 715 requirements at a lower cost than a full GAAS audit. Procedures are scoped to NCUA standards with a written report of findings for board review.
Full Financial Statement Audit ($500M+ Institutions)
Full GAAS financial statement audit for credit unions over $500M in assets. Independent auditor's opinion on financial statements prepared in accordance with GAAP, with required NCUA-specific supplemental disclosures.
Loan Portfolio Quality Review
Independent assessment of loan delinquency classification, charge-off practices, ALLL/ACL methodology, and concentration risk. Identifies methodology weaknesses before an NCUA examiner does.
BSA/AML Compliance Testing
Review of BSA/AML program documentation, SAR and CTR filing procedures, Customer Due Diligence (CDD) practices, and annual training records — increasingly expected as part of supervisory audit procedures by NCUA examiners.
Board Audit Committee Support
Education, meeting facilitation, and reporting support for credit union board audit committees and supervisory committees — helping volunteer committee members fulfill their oversight responsibilities under Part 715.
Credit Union Audit Requirements by Asset Size
| Asset Size | NCUA Requirement | Audit Type | Estimated Cost |
|---|---|---|---|
| Under $10M | Part 715 supervisory committee audit | Volunteer or CPA AUP | $3,000–$5,000 |
| $10M–$100M | Part 715 supervisory committee audit | CPA AUP recommended | $5,000–$12,000 |
| $100M–$500M | Part 715 + optional full audit | CPA AUP or full audit | $10,000–$25,000 |
| Over $500M | Full CPA financial statement audit | Full GAAS audit | $20,000–$50,000+ |
Our Credit Union Audit Process
A 4-step process from engagement planning to board report delivery.
Regulatory Requirement Confirmation
Confirm your credit union's specific audit requirements based on asset size, charter type (federal vs. state), and state regulator expectations — then scope the engagement to meet all applicable standards.
Fieldwork — Account Verification and Control Testing
Verify member account balances, test loan portfolio quality, reconcile investment accounts, review ALLL/ACL methodology, and assess internal controls and BSA/AML program documentation.
Findings Review and Management Discussion
Present draft findings to management before the report is finalized — allowing the credit union to prepare responses and corrective action plans for any material issues identified.
Board and Supervisory Committee Report Delivery
Issue the final AUP report or auditor's opinion letter to the supervisory committee and board of directors, formatted for NCUA examination review and member transparency.
Credit Union Audit in DC, Maryland & Virginia
Virginia
Virginia-chartered credit unions are regulated by the Virginia Bureau of Financial Institutions (BFI). Federal credit unions in Virginia fall under NCUA's Mid-Atlantic Region. The DMV area has a high concentration of federal employee credit unions and community development credit unions.
Maryland
Maryland state-chartered credit unions are regulated by the Office of Financial Regulation (OFR). NCUA-insured Maryland credit unions must meet both state OFR and NCUA Part 715 requirements. Maryland has a growing CDFI credit union sector serving underbanked communities.
Washington DC
DC-chartered credit unions are regulated by the DC Department of Insurance, Securities and Banking (DISB). Many DC-area credit unions serve federal government employees and contractors — creating unique membership verification and field-of-membership compliance requirements.
The DMV area is home to hundreds of credit unions — from small community institutions to large federal employee credit unions. Your Virtual CPA understands NCUA Part 715, state regulator requirements, and the specific audit needs of DC, Maryland, and Virginia credit unions.
Credit Union Audit FAQs
Common questions from credit union boards and supervisory committees in DC, Maryland & Virginia.
NCUA Part 715 Compliance Starts with the Right Audit Partner.
Whether you need a low-cost AUP supervisory audit or a full GAAS engagement, our team delivers the independent oversight your members and examiners expect.
Serving credit unions in Virginia, Maryland, Washington DC, and the greater DMV area.