What is the primary purpose of internal audits in credit unions?

The primary purpose of internal audits in credit unions is to strengthen the organization's ability to create, protect, and sustain value. Internal audits assess the effectiveness and efficiency of various operations, ensure compliance with regulations, and identify areas for improvement. This comprehensive evaluation helps the credit union enhance its overall governance, risk management, and control processes. By achieving these objectives, the internal audit function contributes to the credit union's strategic goals and long-term stability, fostering trust and ensuring the continued provision of quality services to its members.

While other options like monitoring employee performance and reducing operational costs are activities that may arise as a result of internal audits, they do not encapsulate the full scope of their fundamental purpose, which is centered around value creation and protection within the organization.