How frequently are external assessments of the internal audit function required to be performed?

External assessments of the internal audit function are required to be conducted at least once every five years in accordance with established standards such as those set forth by the International Standards for the Professional Practice of Internal Auditing. This time frame ensures that the internal audit function is periodically evaluated by an external party, providing an objective review of its effectiveness, compliance with standards, and alignment with best practices.

Conducting the assessment every five years allows credit unions to benefit from a thorough analysis of their internal audit processes, which helps to identify areas for improvement and promotes adherence to regulatory and professional standards. This interval strikes a balance between too frequent evaluations, which may lead to unnecessary resource expenditure, and infrequent assessments that could result in outdated practices not reflecting the current regulatory environment or organizational changes.