Industry — Financial Institutions

Regulatory Audits for
Community Banks & Credit Unions

We deliver independent audits built for the regulatory expectations of the FDIC, NCUA, and state banking authorities — with deep expertise in bank accounting and credit loss methodology.

Overview

Regulatory Audits for Community Banks and Credit Unions

Community banks and credit unions operate in one of the most heavily regulated sectors in the US economy. State and federal banking regulators — the FDIC, NCUA, OCC, and state banking departments — impose independent audit requirements as a condition of continued operation. These audits are not merely a compliance formality; they are a critical tool for regulators to assess financial stability, adequacy of loan loss reserves, and the soundness of risk management practices.

We bring specialized knowledge of bank and credit union accounting — allowance for credit loss (ACL) methodology under CECL, investment portfolio accounting, regulatory capital calculations, and the unique disclosure requirements of financial institution financial statements. We understand what banking examiners look for, and we prepare our audit work products accordingly.

Financial statement audits under US GAAP (ASC 326 / CECL)

Allowance for credit loss (ACL) methodology review

Investment portfolio and fair value testing

Regulatory capital adequacy assessment

Internal control evaluation over financial reporting

Coordination with bank and credit union examiners

Management letter with internal control observations

FAQ

Common Questions

What is CECL and how does it affect bank audits?

CECL (Current Expected Credit Loss) is the accounting standard under ASC 326 that replaced the incurred loss model for estimating credit losses. Under CECL, banks and credit unions must estimate lifetime expected credit losses on financial assets at the time of origination — a forward-looking approach. We audit ACL models and the assumptions underlying credit loss estimates, which is often the most judgment-intensive area of a bank financial statement audit.

How do you coordinate with our bank examiners?

We maintain open communication with bank and credit union examination teams and are experienced in providing audit documentation to support regulatory examinations. We time our engagement to ensure final audited financials are available before scheduled examinations where possible.

Are credit unions subject to the same audit requirements as banks?

Credit unions are regulated by the NCUA (for federally chartered and some state-chartered credit unions) or state regulators, and face independent audit requirements that parallel those for community banks. The accounting standards applied are largely the same (US GAAP), though there are some credit union-specific regulatory accounting principles that may apply.

Regulatory Audits forCommunity Banks & Credit Unions

Regulatory Audits for Community Banks and Credit Unions

Common Questions

Let's Discuss Your Banks & Credit Unions Engagement

Regulatory Audits for
Community Banks & Credit Unions