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"Once you have that CPA after your name, you are supposed to know everything." WAY too much expectation. If you know how to get the current answer and have sense enough to see if it makes sense, you have earned your letters. I ponder taking the only somewhat recognized payroll pro cert, but I have seen the sample questions, and while a good gatekeeping tool for those who want such a thing, it does not mean - to me - a holder can handle a payroll on their own. I actually signed up this year, but because I am my own employer, I have to do something (step/steps unknown at present) so I can say I have the experience needed (I am effectively challenging, I want to do it with no actual study). But their process somehow failed to send me the requirements to certify myself, and even a direct email did not get it going, so I am not liking their process (which devalues it in my mind). I am considered an "expert" in their online group board, I guess whoever monitors that has determined I give reasonable help/suggestions... Back to the OP, I would assume to start the NCUA knows their stuff, and they have dealt with this before and have many other members already doing what they suggest/require. If it is possible to see public books of another member (maybe your own CU if you are a member of a CU) that may help with real world view. The NCUA is a likely powerful governing body, so taking them on likely will be expensive, if not detrimental, to the CU.

Do you have any PPC guides? If you have the one entitled "Preparing Financial Statements," it covers the various categories and handling of debt securities including its opinion on classifications and handling of sales in the "held to maturity" category.

Definitely true to have some sort of app level protection if there is an online aspect. If all data is local, then requiring extra auth (beyond license check to see if you are paid) is overkill - assuming you self-protect for compliance. Meaning if the data is in your control, but the vendor required some secondary process to access their "software", then that secondary process adds nothing and does not ensure compliance. The data sitting on your computer is not protected unless it is scrambled and secured by the app, or you have done whole computer protection.

I would spend the time to make internal note outlining the situation, what you did on termination, and what possible complications (and if known, solutions) for the future. All while fresh, in case something comes back a couple years later.

Yuck. This is an issue with opinion-based services (with little chance of bad or dark gray opinions getting caught). Same with a tax preparer helping get withholding to the liability amount, say to make their net meet expenses every month, and then getting fired for not getting a "fat" refund. I have been fired so many times I have lost count! I still, to this day, get into it with CPA types who do incorrectly tell my customers something. The most common examples are owner/shareholder who are also employees. CPA or other "expert" says to pay themselves wages once a quarter/year (the expert later cleans up all the "draws"), or report >2% S Corp health insurance once a year. The former do get caught "tax shifting" from time to time, the latter never get caught because it is a tax wash, but still improper. I remember doing the math for ERC to present it, and some would look at me sideways when I pointed out the ERC $ was not what the net would be. Funny, I am still ticked at the after the fact claw back of the last ERC quarter to help fund the recovery act money. Catch-22, some of the money went to rehab two race tracks I like to watch, those tracks are not going to give me a discount to cover the ERC I lost to help pay for their "gift". I thought I would personally get at least some via recovery act credits for solar and electrical upgrades, but CA has made solar a non-starter for me, given my age, roof size, and ability to shift loads to off peak.

Yes, I would send a letter confirming the termination of your services. If you have not already done so in writing, I would advise your former client to file the 2023 Form 1120 S and the amended tax returns that you prepared. In addition I would make sure that all original documents have been returned. Yes situations like this are depressing. I am currently in the midst of ending my relationship with my third largest business client which started in July 1993.