Paper
Development Best Practices in Credit Union Supervision: Examination Process - Management Review
How does the examination process of a credit union review the management?
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8 pages
This paper details the management review that forms a part of the examination process of a credit union. The paper states that:
- The review determines whether the current management is capable of responding to financial pressures and economic and local market changes;
- The quality of the management should be evaluated by determining the effectiveness of the board of directors, the committees and the operational management;
- The assessment of the management should be based on reviews of:
- Internal controls;
- Management conduct;
- Service to members;
- Business strategy/financial performance.
The paper discusses:
- Objectives of the management review;
- Scope of the review;
- The necessity to document all the review steps in writing, including the work papers;
- Board minute review;
- Internal control review, which assesses the quality of established internal controls, some of which are:
- Audit program;
- Accounting;
- Training of personnel;
- Succession planning.
The paper concludes by:
- Listing signs of warning that the examiner should look for;
- Discussing management deficiencies.
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