Internal Audit: What It Does for a Credit Union’s Operations
Credit Union Advisor, 2006 Fall

An effective internal audit process is essential in today’s rapidly paced financial environment. Management needs timely assurance regarding the quality of the institution’s ongoing operations and the effectiveness of the internal controls system. Likewise, audit/supervisory committees rely on this independent appraisal function in order to fulfill its oversight responsibilities. The internal audit function is uniquely positioned to assist management in the evaluation and documentation of risk management programs, as defined by regulatory agencies. The characteristics of an effective internal audit process include:

• Frequent and direct communications with the oversight committee and management
• Written reports containing timely and useful information
• A risk-based plan and schedule
• Proficient and highly trained staff
• Efficient auditing methods that include the use of automated tools
• Internal auditing positioned as a service for management throughout the organization

An effective internal auditing process adds value to an organization through the enhanced predictability of outcomes and the management of significant loss exposures. The following internal audit services are provided by Plante & Moran:

• Assessment (report card) of an institution’s internal audit program and risk management activities
• Audit charter policy review and development
• Audit/Supervisory committee assistance
• Risk analysis and multi-year internal audit plan development
• Internal audit projects and control studies
• Outsourced (or cosourced) internal audit services, including specialized and ACH trust/financial service audits