What is a primary outcome of conducting internal audits?

Conducting internal audits primarily aims to enhance the efficiency of organizational processes. Internal audits serve as a systematic review that evaluates the effectiveness and adequacy of a credit union's operations, controls, and risk management practices. By examining operations closely, internal audits identify areas of improvement and ensure processes are streamlined, which can lead to reduced costs, improved service delivery, and enhanced overall performance.

While satisfying regulatory requirements is an important aspect of internal audits, this is more of a means to an end rather than the primary goal. Similarly, redirecting management focus is typically an outcome of audit findings rather than a core purpose of the audit itself. Lastly, creating more paperwork is often viewed negatively and is not aligned with the primary objectives of internal auditing, which seeks to add value and improve operations. Therefore, the enhancement of organizational efficiency is recognized as the main outcome of effectively conducted internal audits.