The role of credit unions in overseeing the performance of financial institution members who are subject to examinations is known as their Examination Review Board. This body of governing board consists of independent non-profit citizens appointed by the local or state governing bodies. These officers review and make recommendations concerning the performance of the members of credit unions that have been subjected to an examination. These examinations are conducted to uncover whether the members of credit unions are performing financially responsible business practices and are meeting their obligations when it comes to doing so. As such, there are various areas that must be examined in order for a credit union to successfully pass an examination. One of these areas is the area of internal control.
The Internal Control Audit and Compliance Review sections of the United States Stock Exchange are the two main areas of concern when it comes to conducting examinations. In the United States, these sections are found in Regulation 15 Akin to that of regulation on securities and activities in the Alternative Investment Companies Act. Regulation 15 Akin to that of Regulation D is the portion of the Securities Exchange Commission (SEC) that oversees publicly traded corporations. The SEC also has a rule pertaining to examinations and their applicability. Among these rules is the one pertaining to the provision of written statements by officers of the credit unions to the Underwriters on behalf of a prospective client in connection with the subject of an examination.
Conducting examinations are part and parcel of being a regulated entities. For this reason, all regulated entities are advised to have an accounting department that is able to perform examinations and make necessary recommendations concerning the effectiveness of internal controls and compliance with applicable laws. There are regulations that govern the manner in which examinations are to be performed and the reports that need to be filed by duly certified and appointed examiners. The best way to ensure that you as a regulated entity pass any required examination is to consult with an accounting firm that is well versed with the requirements of the various examinations prevalent in the stock markets and that have a good track record in conducting corporate examinations.