What are the foundational standards for internal auditing in a credit union context?

The foundational standards for internal auditing in a credit union context are defined by the International Standards for the Professional Practice of Internal Auditing (IPPF). These standards provide a framework that guides internal auditors in maintaining professionalism, competency, and effectiveness in their work. The IPPF is developed by the Institute of Internal Auditors (IIA) and emphasizes the values, independence, and objectives of internal audits, which are essential in supporting governance, risk management, and control processes within organizations—including credit unions.

While Generally Accepted Accounting Principles (GAAP) and the Financial Accounting Standards Board (FASB) are important for financial reporting, they do not specifically address the internal audit processes or standards. GAAP focuses on the accounting practices that entities must follow when preparing financial statements, while FASB is responsible for establishing financial accounting and reporting standards for U.S. entities.

In contrast, ISO 9001 Quality Management Standards pertain to quality management systems and continuous improvement processes and do not specifically relate to internal auditing standards. They provide guidelines for improving operational efficiency but do not encompass the comprehensive framework needed for internal audit functions.

Thus, the IPPF is the appropriate set of standards for internal auditing that ensures thorough risk assessment, systematic evaluation, and enhancement of internal controls within