What is the primary purpose of an internal audit function?

The primary purpose of an internal audit function is to assess compliance and improve operations. Internal audits are critical for evaluating the effectiveness and efficiency of a credit union's internal controls, risk management processes, and governance. By performing systematic and objective evaluations, the internal audit function helps ensure that the credit union is adhering to applicable laws, regulations, and internal policies.

Additionally, internal audits identify areas for operational improvement, enabling management to take corrective actions, enhance processes, and reduce inefficiencies. This function supports the overall integrity of the organization by providing assurance to stakeholders that risk management practices are in place and that the credit union operates in a manner that is ethical, accountable, and effective.

While generating revenue, recruiting new members, and establishing marketing strategies are important aspects of a credit union's operations, they fall outside the primary purpose of the internal audit function. Instead, the internal audit's focus is squarely on assessing systems and processes for compliance and operational improvements, which ultimately supports the organization’s success in delivering its services efficiently and effectively.