What is a primary role of internal audit?

The primary role of internal audit is to monitor compliance with laws and regulations. This function is crucial for ensuring that the credit union operates within the legal frameworks established by governmental authorities and regulatory bodies. Internal auditors assess the effectiveness of the institution's internal controls and risk management processes, and they help to identify areas of non-compliance that could lead to legal penalties, financial losses, or reputational damage.

By conducting regular audits, internal auditors provide an objective evaluation of how well the credit union adheres to relevant laws and regulations, which is essential for maintaining the trust of members and stakeholders as well as ensuring sustainable operations. This role not only protects the credit union but also underscores its commitment to ethical practices and regulatory adherence.

In contrast, establishing marketing strategies, educating staff on digital technologies, and enhancing member services, while important functions within the organization, do not specifically fall under the core duties of internal audit. These areas are typically managed by departments focused on marketing, training, and member services, rather than by auditors whose primary focus is on risk management and regulatory compliance.