Depending on the size of a credit union, examiners conduct either a risk-focused examination or a defined-scope examination. The defined-scope examination outlines specific exam steps that focus on a credit union’s internal controls, recordkeeping, and lending, which enhance an examiner’s ability to detect fraud.
-
For a defined-scope exam: Perform the required steps and ensure reviews are conducted by accurately answering questions in the Targeted, Conditional, and Expanded scope steps. If an examiner suspects that fraud is occurring, consult with the SE.
-
For a risk-focused exam: If the examiner notes one or more red flags, discuss with the SE, and consider additional exam steps.
There are also informal procedures examiners can use to help recognize the potential for fraud.
Last updated on May 01, 2023
