Credit Union Internal Audit is a key focus of the PRA during regulatory visits. With the increasing regulatory focus coupled with the growing complexity of Credit Union operations and difficulty in hiring training supervisory committee members many Credit Unions are using a trained Credit Union Internal Auditor like ourselves to carry out their Credit Union Internal Audit. Credit Union Internal Audit is an important resource for the Credit Union in not only identifying non-compliance or control weaknesses but it helping the Credit Union’s efficiency. We have set out below some of the key features of our Credit Union Internal Audit service:
We have worked with a wide range of Credit Unions over the last 25 years
We work with over half of the top 20 Credit Unions in Britain. Our clients range from 500 – 35,000 members.
We devote significant resources to ensure we are up to date with the latest Credit Union developments. This means we can provide you with advice and support you need.
Our work programmes are compliant with the guidance paper Effective Internal Audit in the Financial Services Sector issued by the Institute of Internal Auditors.
External audit is focusing on whether the numbers in the year end accounts. Internal audit is considering your controls throughout the year including non-financial controls.
Yes. Not only is it a regulatory requirement there are also benefits to the Credit Union. While both look at compliance the internal auditor focus will be on controls thoughout the organisation. A strong internal audit function will help support your compliance officer.
Yes the regulator requires a Credit Union to have an internal audit function whether that is carried out by the Supervisory Committee or a Credit Union Internal Auditor. It also is key to helping give the Board the assurance they require that the Credit Union’s controls are operating effectively.
An external firm helps to provide independence. In addition, Credit Union internal audit is a specialised area and therefore you need experts who understand the Credit Union’s systems an controls. From working with many Credit Unions we have seen many examples of both good and poor practice.
Yes for many of the Credit Unions we work with they use both a Supervisory Committee and an Internal Auditor to carry out their internal audit work. The Internal Auditor can provide specialist analysis of key areas while the Supervisory Committee can carry out their reviews in between providing a cost effective system for the Credit Union.
Prior to starting the internal audit work we would carry out an Audit Needs Assessment. This would involve review of key documentation in the Credit Union and discussions with key management to identify what are the priorities for the Internal Audit Programme. We would then develop a 3 year Internal Audit plan on how and when these areas would be reviewed. The plan is then provided to the Credit Union for its comments and agreement.