| ID | Status | Date | Public/Private | Industry | AHACPA Contact |
|---|---|---|---|---|---|
| #6761 | Closed | public | FHA Lender | Les Sparks |
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We are using the suggested sample size from the audit guide and are getting push back from every lender. I have one client that we need to sample 99 files. This is a new client and they came back stating that this is 4 times the number of loans sampled by the various auditors they have had in the past, even from HUD. We are sampling 10% of closed FHA loans. Just want to make sure there is not an exception and how are other auditors getting away with sampling at less than the audit guide’s sampling requirements? |
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From Les Sparks: You are making a very common mistake. You are sampling at a level required of the client’s QC process. They are required to sample at 10%. The samples for the Guide are listed in a appendix to chapter 1 of the Guide. Minimum sample sizes start at 25 for a low-risk audit and go up to 60 in high-risk situations. The 10 percent is a client guideline for QC. Download chapter 1 from the HUD OIG website. It is in the appendix. From client: On another note, with the new administration’s focus on reducing regulation, have you heard anything concerning the potential for HUD removing or moving away from requiring audited reports for multifamily projects? From Les Sparks: Not a peep. Nor are we likely to. These these are kind of set by law. IF we were to see anything, it would be with lenders. However, there is no discussion. |