CU2309. Auditing CECL Key Considerations

This session is a higher level, presentation only version of the Auditing CECL Workshop. Following a second wave of the CECL adoption, credit union auditors need to establish an effective and efficient process to audit the CECL models that is fit for the size and complexity of the organization. This session will leverage what we’ve learned from auditing with the first wave of CECL adopters to guide participants in audit approach that fit in line with the CECL A&A guidance. We will walk through example CECL calculations of common approaches and discuss audit approaches.

Learning Objectives:

• Determine key risk areas relating to CECL for the audit
• Use ways to audit the quantitative and qualitative components of the CECL reserve.
• Analyze what testing is typically performed over controls and/or data relating to the model
• Identify how benchmark data can be used in the auditing process