Aug. 4, 2003


  • As a former NCUA examiner and CU CEO & CFO, I'll share that there are two firms on here I highly respect, and one what does a shoddy job, finds exceptions and fails to put them in their report even though they are noted on their work papers. The firm is almost always the lowest bid. Auditors work by the hour - so the CUs with the better organized account records gets the lower bid. There is no such thing in cost per asset size in real life. A $25 million CU with full services can take as long to audit as a $500 million plain vanilla CU with centralized lending. As you would when selecting a DP firm ALWAYS, always, always get references from both the CEO & Audit committee, and NOT from the list the sales-partner gives you (Those references will all be more than lovely) As for the "Arthur Anderson thing" of getting consulting help and audit help from the same firm . No. Dot. Do. It. It's a conflict of interest because the auditors are review the results of their firms recommended action. CPA firms with the highest integrity REFUSE to do both services for the same client (M&P). We all know how the Arthur Anderson thing turned out for the S&L crash of 1984 as well as Enron.
    Carolyn Warden CCUE
  • Excellent source material for research.
    Gerard Herrling
  • I'd like to know average fee per $100 mil. or something price wise. I'd also like to know what % of their work is agreed upon procedures, and what % are opinion audits. And finally I'd like to knwo if any of them do the "arthur Anderson thing" and books consulting or other work engagements with that % of their clients and what % of the audit fee are these extra billables?