What is the 'audit committee' in a credit union?

The 'audit committee' in a credit union is primarily a subset of the board of directors that is responsible for overseeing the internal audit functions. This committee plays a crucial role in ensuring the integrity, accuracy, and reliability of financial reporting and compliance with applicable laws and regulations. It provides oversight and guidance for the internal audit process, facilitating the identification and assessment of risks, and ensuring that any findings from audits are properly addressed.

The audit committee aids in maintaining transparency and accountability within the credit union, which is essential for fostering trust among members. By overseeing the internal audit, the committee ensures that any potential issues are handled promptly and effectively, aligning with the credit union's objectives and safeguarding member assets.

Other options do not accurately reflect the primary purpose and responsibilities of the audit committee. For example, evaluating member services and focusing on member complaints does not relate to the audit functions, while external audits are conducted separately and are not the primary responsibility of the audit committee.