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Annual audit - 17 Pa. Cons. Stat. § 714

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     § 714.  Annual audit.
        (a)  Supervisory committee.--If the bylaws of the credit
     union provide for a supervisory committee, the duties of the
     supervisory committee shall be as follows:
            (1)  To make at least an annual audit of the affairs of
        the credit union. The committee shall submit a report to the
        board of directors and to the members at the next annual
        meeting of the credit union.
            (2)  By unanimous vote, if it deems such action to be
        necessary to the proper conduct of the affairs of the credit
        union, to suspend any officer, director or member of any
        committee other than the supervisory committee. In such
        event, the committee shall call the members of the credit
        union together, within ten days of the suspension, to act on
        such suspension. The members at the meeting called for this
        purpose may sustain such suspension or remove such person
        from office or may reinstate such person.
            (3)  By majority vote, the supervisory committee may call
        a special meeting of the members to consider any matter
        submitted to it by the committee. The committee shall fill
        vacancies in its own membership unless otherwise provided in
        the bylaws.
        (b)  Default by supervisory committee.--Whenever the
     supervisory committee fails to make the audits or reports as
     provided in subsection (a)(1), the board of directors shall
     remove from office the members of the supervisory committee and
     appoint a new committee to make such audits, or the board may
     employ the services of a public accountant to make such audits.
     The charges for the services of such public accountants shall be
     paid by the credit union. If the board of directors under such
     circumstances fails or refuses to act, the department may, in
     addition to its other powers, remove the members of the
     supervisory committee and issue an order on the board of
     directors requiring such audits to be made by a public
     accountant at the expense of the credit union.
        (c)  Audit by public accountant.--If the bylaws do not
     provide for a supervisory committee, the board shall employ the
     services of a public accountant to make audits under subsections
     (a) and (b). The charges for the services of the public
     accountant shall be paid by the credit union.
        (d)  Requirement for an outside audit.--
            (1)  A credit union shall obtain an outside, independent
        audit by a certified public accountant or other approved
        service for any fiscal year during which any one of the
        following conditions exist:
                (i)  the supervisory committee of the credit union
            has not conducted an annual supervisory committee audit;
                (ii)  the annual supervisory committee audit
            conducted did not meet the audit requirements required by
            the department; or
                (iii)  the credit union has experienced serious and
            persistent recordkeeping deficiencies as defined in
            subsection (e).
            (2)  In the case of an audit required pursuant to
        paragraph (1)(i) or (ii), the scope of the outside,
        independent audit shall fully encompass the requirements set
        forth in the department's audit guidelines. In the case of an
        audit required pursuant to paragraph (1)(iii), the outside,
        independent audit must be conducted by a certified public
        accountant and must be an opinion audit as that term is
        understood under generally accepted auditing standards.
        (e)  Definition.--As used in subsection (d)(1), "persistent
     recordkeeping deficiencies" means serious recordkeeping problems
     which continue to exist past a usual, expected or normal period
     of time. Persistent recordkeeping deficiencies shall be
     considered serious if the department has a reasonable doubt:
            (1)  That the financial condition of the credit union is
        accurately and fairly presented in the credit union's
        statement.
            (2)  That management practices and procedures of the
        credit union are sufficient to safeguard members' assets.
     (Dec. 9, 2002, P.L.1572, No.207, eff. 60 days)

        2002 Amendment.  Act 207 amended the section heading and
     subsecs. (a)(1), (b) and (c) and added subsecs. (d) and (e).

Last modified: November 27, 2007