Article
Navigate the risk environment with an internal audit plan
Aug. 17, 2023 · Authored by Chris Wetzel and Cory Ingram
A version of this article was previously published in the 2023 edition of the Callahan Credit Union CPA Guide.
For credit unions, internal audit plans have historically been handled by one department performing a specific process — as opposed to taking a more holistic approach to how operational frameworks and related controls are evaluated.
As the risk landscape for financial institutions evolves, more external risk factors emerge in addition to already pressing internal risks. These can include higher interest rates, cybersecurity incidents, regulatory changes, market volatility, and natural disasters.
Discussed below is a macro approach for identifying the organization’s audit universe, assessing risks within the business lines, and building an internal audit plan that provides more value to the institution.
What internal risk factors do credit unions face?
Besides these new external factors, credit unions also face numerous internal risks, including those that come with the additional expectations of a remote workforce and compliance costs. As member bases become more diverse, the audit’s role within the organization can also become more complicated not only in effectively performing its protective function, but also how it can add value to the business.
Additionally, regulatory agencies have increased expectations regarding information reporting related to how risk assessment aligns with the institution’s enterprise risk profile.
What is the value of an internal audit plan?
Beyond identifying process deficiencies, an internal audit can help you comply with operational procedures and regulatory requirements, or to simply help assess your internal controls related to finance, operations, or compliance.
