What does effective internal auditing contribute to a credit union?

Effective internal auditing plays a critical role in protecting and sustaining value for a credit union. The primary function of internal auditing is to evaluate the effectiveness of risk management, control, and governance processes within the organization. This oversight ensures that the credit union operates in compliance with regulations, follows established internal policies, and utilizes resources efficiently.

By identifying areas for improvement and ensuring that risks are managed, internal auditing contributes to the integrity and reliability of financial reporting, which is vital for maintaining members' trust and confidence. This, in turn, helps to sustain the credit union's value by promoting sound financial practices and safeguarding its assets.

Other options, such as enhanced marketing strategies or greater transaction throughput, while important for the overall success of a credit union, are not primarily the focus of internal auditing. Increased loan interest rates could be a financial strategy but does not directly tie into the core function and purpose of internal audit activities, which center around risk, control, and ensuring the organization operates effectively and efficiently.