What is the goal of conducting a compliance audit?

The goal of conducting a compliance audit is to assess adherence to laws and regulations. This type of audit focuses on evaluating whether an organization is following applicable legal standards and regulatory requirements that govern its operations. By systematically reviewing processes, procedures, and documentation, the audit ensures that the credit union complies with relevant laws, such as those related to consumer protection, anti-money laundering, and data privacy. This is critical for mitigating risks, avoiding penalties, and maintaining the organization’s reputation.

While improving operational efficiency, creating financial policies, and enhancing user satisfaction are important objectives in improving organizational performance, they are not the primary focus of a compliance audit. Such audits are specifically designed to ensure that the institution is meeting its legal obligations, which is foundational to its operational integrity and long-term sustainability.