Statement - Roundtable with credit union external auditors

As part of the Central Bank's ongoing and pro-active engagement with external stakeholders, it held a roundtable discussion on 26 July with a number of credit union external auditors and representatives from ICAI and ACCA. 

The Central Bank outlined its ongoing concerns over identified  weaknesses in governance and systems and controls  in credit unions arising from supervisory engagements which have been communicated to the sector[i]. Compliance with the strengthened regulatory framework, in place for credit unions since 2012, is fundamental to the core obligations of credit unions to safeguard and protect their members’ funds and through its actions the Central Bank seeks to ensure the highest standards of regulatory compliance across the sector.

A discussion took place on need for full awareness by all stakeholders of the obligations and respective roles of credit unions, auditors and of the Central Bank as regulator. The Central Bank stressed its expectation that auditors report matters of material significance to it in line with their statutory obligations, including such items as material defects in accounting records and systems of control and records. Attendees raised a range of issues, including challenges they encounter during the course of their audits.

A discussion on audit planning for 2017 year-end followed, as well as a discussion of practical issues faced by auditors in undertaking their role as credit union auditor. The Central Bank urged auditors to be fully aware of their statutory duty to report matters of material significance to the Central Bank as regulator, to use the  guidance for credit union auditors[ii] published in 2016 to inform their audit  work and in particular to remain vigilant to any issues which may indicate deficiencies in internal control and any risks of material  misstatement  due to fraud or error.