The Need to Improve Auditing in the Savings and Loan Industry
T-AFMD-89-2: Published: Feb 21, 1989. Publicly Released: Feb 21, 1989.
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GAO discussed problems with independent audits of savings and loan associations (S&L) and its suggestions for improving the quality and regulatory use of such audits. GAO noted that its review of audits of 11 failed S&L found that certified public accountants (CPA) did not adequately: (1) evaluate risks associated with high-risk loans, identify collectivity problems associated with restructured loans, or verify bank statements about loan collectivity; and (2) report banks' improper accounting practices, regulatory violations, insider loans, risks associated with geographic concentration, and internal control problems. GAO also noted that the auditing profession could revise its S&L audit procedures to require: (1) more detail regarding the risks posed by land, acquisition, development, and construction loans and restructured or past-due loans; (2) followup on federal examiners' work; and (3) disclosure of regulatory violations, formal regulatory actions, and material internal control weaknesses. GAO believes that the accounting profession, which has already taken some steps in response to the GAO review of auditing quality, should reevaluate CPA staff requirements regarding knowledge of S&L and tailor audit methodologies to the S&L environment.
Jan 28, 2021
Macroprudential Oversight:
Principles for Evaluating Policies to Assess and Mitigate Risks to Financial System StabilityGAO-21-230SP: Published: Jan 28, 2021. Publicly Released: Jan 28, 2021.
Dec 16, 2020
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Financial Stability:
Agencies Have Not Found Leveraged Lending to Significantly Threaten Stability but Remain Cautious Amid PandemicGAO-21-167: Published: Dec 16, 2020. Publicly Released: Dec 16, 2020.
Dec 10, 2020
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Federal Reserve Lending Programs:
Use of CARES Act-Supported Programs Has Been Limited and Flow of Credit Has Generally ImprovedGAO-21-180: Published: Dec 10, 2020. Publicly Released: Dec 10, 2020. -
Financial Assistance:
Lessons Learned from CARES Act Loan Program for Aviation and Other Eligible BusinessesGAO-21-198: Published: Dec 10, 2020. Publicly Released: Dec 10, 2020.
Sep 22, 2020
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Anti-Money Laundering:
Opportunities Exist to Increase Law Enforcement Use of Bank Secrecy Act Reports, and Banks' Costs to Comply with the Act VariedGAO-20-574: Published: Sep 22, 2020. Publicly Released: Sep 22, 2020.
Sep 4, 2020
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Bank Supervision:
FDIC Could Better Address Regulatory Capture RisksGAO-20-519: Published: Sep 4, 2020. Publicly Released: Sep 4, 2020.
Jul 21, 2020
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Financial Company Bankruptcies:
Congress and Regulators Have Updated Resolution Planning RequirementsGAO-20-608R: Published: Jul 21, 2020. Publicly Released: Jul 21, 2020.
Jul 6, 2020
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Public Companies:
Disclosure of Environmental, Social, and Governance Factors and Options to Enhance ThemGAO-20-530: Published: Jul 2, 2020. Publicly Released: Jul 6, 2020.
Apr 30, 2020
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Priority Open Recommendations:
Department of the TreasuryGAO-20-549PR: Published: Apr 23, 2020. Publicly Released: Apr 30, 2020.
Apr 27, 2020
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Priority Open Recommendations:
Board of Governors of the Federal Reserve SystemGAO-20-499PR: Published: Apr 20, 2020. Publicly Released: Apr 27, 2020.
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