Worked at the last place for seven years - - - one audit. Been here three - - - no audits.
I must admit that I was surprised at how in-depth they were. They sent more people than I expected and REALLY went thru each file with the fine toothed comb. They made a checklist against the original guarantee authorization and went to work. Then they checked for follow through - - collecting financial statements, tax returns, updated insurance. Any missed years were noted not just the lack of a current statement. They looked through officer comments to see how frequently loan officers were meeting with the borrowers, etc.
Finally, they performed a mini "loan review" on current credit quality of a large sample of the SBA loans.
They were pit bulls on the post-audit follow up, too. I know our loan admin dept was getting a fax every week with the list of outstanding items.
Hope this helps.....not a recent audit.....maybe 2003?