What type of audit focuses on compliance with laws, regulations, and internal policies?

A compliance audit specifically centers on evaluating an organization's adherence to relevant laws, regulations, and internal policies. This type of audit is critical for ensuring that a credit union operates within the legal framework and meets the standards set by regulatory bodies.

In a compliance audit, auditors review documentation, processes, and practices to confirm that the organization is fulfilling its obligations and operating in a lawful manner. This could include examining practices related to consumer protection, anti-money laundering, or other regulatory requirements specific to the credit union's operations.

On the other hand, financial audits focus primarily on the accuracy of financial statements and the effectiveness of financial controls, while operational audits assess the efficiency and effectiveness of operational processes. Performance audits evaluate whether a program or operation is achieving its intended outcomes and using resources effectively. Each of these types of audits addresses different aspects of an organization, making compliance audits uniquely positioned to tackle issues of legal and policy adherence.