Section 13-03-25-04 - Requirements for verification of accounts1.Verification obligation. The supervisory committee, at least every two years, shall cause the accounts of members to be verified against the records of the treasurer of the credit union. 2.Methods. Any ofthe following methods may be used to verify members' passbooks and accounts, as appropriate: a. Controlled verification. A controlled verification of one hundred percent of members' share and loan accounts. b. Statistical method. A sampling method which provides for: (2) A sample which is representative of the population from which it is selected; (3) An equal choice of selecting each dollar in the population; (4) Sufficient accounts in both number and scope on which to base conclusions concerning management's financial reporting objectives; and (5) Additional procedures to be performed if evidence provided by confirmations alone is not sufficient. c. Nonstatistical method. When the verification is performed by an independent person licensed by the state, the auditor may choose among the sampling methods set forth in subdivisions a and b and nonstatistical sampling methods consistent with GAAS if such methods provide for: (1) Sufficient accounts in both number and scope on which to base conclusions concerning management's financial reporting objectives to provide assurance that the general ledger accounts are fairly stated in relation to the financial statements taken as a whole; (2) Additional procedures to be performed by the auditor if evidence provided by confirmations alone is not sufficient; and (3) Documentation of the sampling procedures used and of their consistency with GAAS, to be provided to the commissioner of the department of financial institutions upon request. 3.Retention of records. The supervisory committee must retain the records of each verification of members' passbooks and accounts until it completes the next verification of members' passbooks and accounts. N.D. Admin Code 13-03-25-04
Effective January 1, 2007.General Authority: NDCC 6-01-04
Law Implemented: NDCC 6-06-06