Depository and Lending Institutions: Checklists and Illustrative Financial Statements

This financial accounting and reporting practice aid is invaluable to anyone who prepares financial statements and reports for depository and lending institutions, banks and savings institutions, credit unions, finance companies and mortgage companies. The checklists have been updated to reflect AICPA and FASB pronouncements and interpretations issued as of November 30, 2007. These checklists can be used by preparers of these institutions’ financial statements prepared in conformity with generally accepted accounting principles and by practitioners who audit, review, or compile those financial statements as they evaluate the adequacy of disclosures made in the basic financial statements, notes to the financial statements, and required supplementary information. Illustrative financial statements and auditor’s reports are included in this practice aid.

This nonauthoritative practice aid has been prepared by the AICPA staff and has not been reviewed, approved, disapproved, or otherwise acted on by any senior technical committee of the AICPA and do not represent official positions or pronouncements of the AICPA.

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Acknowledgments — Depository and Lending Industry Working Group

The AICPA would like to acknowledge Myrna H. Parker, AICPA; Dan Trigg, McGladrey & Pullen, LLP; Jane Funk, McGladery & Pullen, LLP; and Susan L. Frishour, Deloitte & Touche LLP for their valuable assistance.

.01 These checklists and illustrative materials have been developed by the AICPA Accounting and Auditing Publications Staff to serve as nonauthoritative practice aids for use by preparers and auditors of financial statements. The auditor’s report checklist addresses those requirements most likely to be encountered when reporting on financial statements of a financial institution prepared in conformity with generally accepted accounting principles. It does not include reporting requirements relating to other matters such as internal control, agreed-upon procedures, etc. The financial statement and notes checklist includes disclosures that should be considered by financial institutions in preparing financial statements in conformity with generally accepted accounting principles (GAAP). The checklist does not include disclosures prescribed by pronouncements whose applicability to depository and lending institutions is considered to be remote.

.02 Users of the financial statements and notes checklist should remember that it is a disclosure checklist only and not a comprehensive GAAP application or measurement checklist. Accordingly, application and measurement issues related to preparing financial statements in conformity with GAAP are not included in the checklist.

.03 Depository and lending institutions operate under comprehensive state and federal regulations. These regulations greatly influence accounting and financial reporting. Depository and lending institutions are also subject to examination by federal and state bank examiners and periodic examinations by the institution’s board of directors. Common accounting and reporting features of depository and lending institutions are described in the AICPA Audit and Accounting Guide Depository and Lending Institutions: Banks and Savings Institutions, Credit Unions, Finance Companies and Mortgage Companies (new edition as of May 1, 2007).

.04 The checklists and illustrative financial statements should be used by, or under the supervision of, persons having adequate technical training and proficiency in the application of GAAP, generally accepted auditing standards, and statements on standards for accounting and review services.

.05 The checklists and illustrative financial statements have been prepared by the AICPA staff. They have not been reviewed, approved, disapproved, or otherwise acted on by any senior technical committee of the AICPA and do not represent official positions or pronouncements of the AICPA.

.06 Users of the checklists and illustrative financial statements are urged to refer directly to applicable authoritative pronouncements when appropriate. If you have further questions, call the AICPA Technical Hotline at (888) 242-7212.

Note: This publication was extracted from sections 2000 through 2500 of the AICPA Financial Statement Preparation Manual (FSP).

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