1. (a) Annual audit requirement. A federally-insured credit union is required to obtain an annual supervisory committee audit which occurs at least once every calendar year (period of performance) and must cover the period elapsed since the last audit period (period effectively covered).
2. (b) Financial statement audit option. Any federally-insured credit union, whether Federal or State chartered and regardless of asset size, may choose to fulfill its Supervisory Committee audit responsibility by obtaining an annual audit of its financial statements performed in accordance with GAAS by an independent person who is licensed to do so by the State or jurisdiction in which the credit union is principally located. (A “financial statement audit” is distinct from a “supervisory committee audit,” although a financial statement audit is included among the options for fulfilling the supervisory committee audit requirement in this section. Compare § 715.2(c).)

3. (c) Other audit options. A federally insured credit union which does not choose to obtain a financial statement audit as permitted by subsection (b) must fulfill its supervisory audit responsibility under either of § 715.5 or § 715.6 of this part, whichever is applicable. See Table 1. For purposes of this part, a credit union's asset size is the amount of total assets reported in the year-end Call Report (NCUA Form 5300) filed for the calendar year-end immediately preceding the period under audit.

   Table 1 to § 715.4

   Type of charter	Asset size	Minimum audit required to fulfill supervisory committee audit responsibility 1	Part 715section
   Federal Charter	$500 Million or more	Financial statement audit per GAAS by independent, State-licensed person	715.5
   	Less than $500 Million but greater than $10 Million	Either financial statement audit or other supervisory committee audit
   	$10 Million or less	Supervisory committee audit.
   State Charter	$500 Million or more	Financial statement audit per GAAS by independent, State licensed person	715.6
   	Less than $500 Million	Supervisory committee audit unless audit prescribed by State law is more stringent
   1 The Supervisory Committee audit responsibility under this part can always be fulfilled by obtaining a financial statement audit. See paragraph (b) of this section.

[64 FR 41035, July 29, 1999, as amended at 84 FR 1607, Feb. 5, 2019; 84 FR 53307, Oct. 7, 2019]