Many credit unions outsource their audits, assuming that once the work is handed off, their role in the process is minimal. The reality is quite different.

Even with a third-party firm handling the audit itself, credit unions still have significant responsibilities in managing document requests, tracking findings, and ensuring compliance.

Often, we hear from credit unions that they don’t have any audit responsibilities because they outsource everything. The reality is quite the opposite. In fact credit unions that assume an outsourced audit eliminates internal responsibilities often find themselves unprepared when examiners ask for updates or documentation.

The Role of Credit Unions in Outsourced Audits

Even when an external firm conducts the audit, someone within the credit union must coordinate the process. That means managing requests, gathering documents, and ensuring responses are delivered on time.

These people are like air traffic controllers, overseeing document requests, managing findings, and tracking the broader risk assessment process. Without clear oversight, the process can become disorganized, leading to delays and increased examiner scrutiny.

Audit coordination isn’t just about logistics. Credit unions still need to assess risks, ensure findings are addressed, and maintain compliance between audits. These tasks don’t go away just because an audit is outsourced.

Why Credit Unions Still Need Audit Management

The need for internal audit management isn’t limited by credit union size. Even credit unions that rely heavily on external audit firms still dedicate significant resources to overseeing the process. After all, outsourcing itself requires significant coordination and management.

In fact, though many of Redboard’s smaller clients outsource completely, all of them devote serious attention to audit management.

(We should note that these credit unions use Redboard for significant time savings and improved findings accountability.)

Why Ignoring Audit Management Increases Risk

Whether an audit is conducted internally or externally, the credit union remains responsible for compliance. Outsourcing doesn’t eliminate risk—it only shifts certain functions to an outside firm.

Every credit union must do audits, whether in-house or outsourced. Either way, those audits will take considerable time and effort. Failure to efficiently manage those audits may result delayed responses, repeat findings, or last-minute scrambles before exams.

The credit unions that see the most value from outsourcing aren’t the ones that step away from audit management completely. Instead, they are the ones that optimize the process, ensuring efficiency without sacrificing oversight.

Redboard is an audit management solution for credit unions. It automates a good deal of the administrative work, leading to a smoother audit process with fewer (and faster) findings.

See how much time you can save here: