For those CUs with Commercial Lending, what do you include in your audit scope as far as loan file review? We have an external company - Cobblestone, that comes in and performs a loan file review on an annual basis. There main objective is for credit rating analysis, however upon reading their report they also include a thorough document review to ensure everything is in order and up to industry standards. I'm beginning to think there is redundancy here when we also include a loan file review in our internal audit, and I'm not convinced that we would find anything that they wouldn't especially because they are Commercial Lending industry experts. Their scope is also very large (larger than our scope) and includes a respectable amount of new loans. So, for CUs that have Commercial Lending that also has an annual external review completed, can you please let me know what you include in your scope (if anything) for Loan File document review? Or do you simply validate that an annual external loan file document review has been completed and just follow up on any findings in that review?? Thanks in advance for your input!
February 8, 2019 - 9:31am
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