What should internal auditors exercise when conducting their assessments?

When conducting assessments, internal auditors should exercise Due Professional Care. This principle is essential because it emphasizes the level of diligence, judgment, and professional skepticism that should be applied throughout the audit process. Due Professional Care requires auditors to plan and perform audits with an awareness of potential risks, to ensure that findings are well-supported, and to maintain objectivity and impartiality.

By adhering to this standard, auditors demonstrate their commitment to providing reliable and accurate evaluations of the credit union's operations, financial reporting, and compliance with laws and regulations. It ensures that assessments are thorough and that any conclusions drawn are based on appropriate evidence, which is critical for effective governance and risk management.

The other options, while they may contain relevant concepts, do not capture the overarching responsibility of auditors to act with the highest level of professionalism and diligence. For instance, while confidentiality and collaboration are important in the auditor's role, they don't encompass the breadth of due diligence expected from auditors in their assessments. Regular compliance checks can support the audit process but are not a substitute for the nuanced judgment and thorough examination expected from auditors practicing Due Professional Care. Lastly, subjective evaluations may risk biases influencing outcomes, which is contrary to the objective and analytical mindset fundamental to the auditing process.