TITLE
12 TRADE, COMMERCE AND
BANKING
CHAPTER
17 CREDIT UNIONS
PART
12 QUALIFIED EXTERNAL
AUDITORS
12.17.12.1 ISSUING AGENCY: Financial Institutions Division of the Regulation and Licensing
Department, P. O. Box 25101, Santa Fe, New Mexico 87504.
12.17.12.2 SCOPE: All credit unions chartered by the State Of New Mexico.
12.17.12.3 STATUTORY AUTHORITY: Sections 58-11-3 & 58-11-38 NMSA 1978.
12.17.12.4 DURATION: Permanent
12.17.12.5 EFFECTIVE DATE: August 14, 2000 unless a later date is cited in the history note
at the end of a section.
12.17.12.6 OBJECTIVE: The objective is to establish requirements for qualifying a
person or firm to perform a comprehensive annual audit of the books and affairs
of any credit union where an audit by a certified public accountant would cost
5% or more of the credit union’s previous year’s net income.
12.17.12.7 DEFINITIONS: [RESERVED]
12.17.12.8 QUALIFIED EXTERNAL AUDITORS:
A. The
supervisory committee of a qualified credit union [with concurrence by the
board of directors] may show proof of exceeding the 5% standard and develop an
alternate audit plan to utilize a person or firm that is not a certified public
accountant or experienced in credit union audits to lessen the financial impact
of the audit on the credit union. This plan must be acceptable to and approved
by the Financial Institutions Division.
B. The
plan must be submitted to the Financial Institutions Division for approval at
least 30 days prior to implementation. The request should include the following
qualification information regarding the person or firm included in the plan:
(1) Resume [of principals involved in the
audit]
(2) Background in accounting internal
routines and controls
(3) Knowledge of account and cash
reconciliation
(4) Knowledge of journal entry and adjusting
(5) Knowledge of financial institution
regulatory laws [i.e. Bank Secrecy Act, etc.]
HISTORY
of 12.17.12 NMAC [RESERVED]