What it is
A credit union is member-owned, funded by shares and focused on consumer lending. The audit follows the loan and allowance work seen at a bank but adds share confirmations, dividends, indirect dealer lending and the net worth ratio.
The workbook has instructions, an overview with completion counts, risks, numbered procedures with initials, date and result columns, and tie-outs to the call report and ledger.
When to use it
- Planning the annual financial statement audit of a federal or state chartered credit union.
- Responding to a supervisory committee request for an audit scope.
- Documenting insider loan and net worth procedures.
What’s inside
- Member loan tests: listing tie-out, confirmation, originations and indirect contracts
- Allowance steps for pooled loans and individually evaluated loans
- Share, dividend, borrowing and dormant account procedures
- Investment, interest income, net worth and insider transaction procedures
Standard cited
This template follows ASC 326-20 / ASC 942. It is written in our own words, except for phrases the standard requires the document to contain, with [bracketed placeholders] for client details, amounts in USD and dates as MM/DD/YYYY. Check it against the current standard and your firm’s methodology before use.
Questions
Does a credit union have different equity?
Yes. It has no stock, so equity is retained earnings and accumulated other comprehensive income. The program includes a check of the equity presentation.
Is the net worth ratio audited?
The ratio is regulatory, not a financial statement amount. The program recomputes it and ties it to the call report so you can evaluate the effect of any shortfall on disclosure.
Where do indirect loans fit?
They are tested in the member loan section, with the dealer reserve, fee amortization and participations.
Related templates
- Audit Program: Bank Loans and Allowance for Credit Losses
- Bank Allowance for Credit Losses Calculation (ASC 326)
- Bank Loan File Review and Risk Rating Test
- Accounts Receivable Confirmation Letter (Positive)
Last updated 11/05/2026. All free templates.