Credit union growth brings always brings new problems—or exacerbates existing ones. There's one common culprit for both:

Audit departments aren’t growing as quickly as their increase in new responsibilities. There isn’t enough time or staff to complete their audit plans or respond to findings. Consequently, credit unions face bigger problems.

That’s where the Audit Efficiency Matrix comes in It's our way to help credit union auditors identify core issues to tackle them in realistic, impactful ways, resulting in higher efficiency. Ultimately, it means more work done with less time and effort. 

Auditors aren’t doomed just because credit unions are growing. Yet, it wouldn’t hurt to get clarity around where things are now, what needs to change, how to change it, and what’s needed to make it happen.

Causes of an Inefficient Audit System

To make meaningful change, credit unions must first know what needs changing. For auditors, the question is, what's preventing us from completing audit tasks? What’s the impact to the organization? Why aren’t necessary tasks getting done?

According to the credit unions we’ve partnered with, there are a handful of common issues that affect most of the industry:

• Lack of bandwidth,
• Outdated processes,
• Frustrated business units,
• Late findings, and
• An overwhelming audit backlog.

All the above keep organizations from reaching their goals. These are the root causes of most of the following symptoms:

Symptoms and Impacts of Inefficiency

The issues above can disrupt the credit union from everywhere from long-term strategy to immediate, member-facing concerns.

There are more serious implications at play here, too:

Symptoms of inefficient audits include repeat and unresolved findings, increased regulatory scrutiny, and dreaded DORs. (Other symptoms include missed communications and frustration.)

When employees feel overworked and frustrated, they get burnt out. Burnout ends in less efficient work and exodus for better opportunities. Fortunately, there are ways to avoid getting overworked (in addition to vacations). That’s where the Audit Efficiency Matrix comes in.

How the Audit Efficiency Matrix Can Help

The Audit Efficiency Matrix addresses four key components of the efficiency issue:

• Why efficiency is key to making impactful change.
• What issues to tackle for strongest effect.
• How to go about making transformation and the tools needed to help.
• Decisions and the criteria needed to make the most efficient choices.

With these in mind, institutions can create a roadmap to a more sustainable future where growth and compliance to regulations aren’t mutually exclusive.

Learn more about the Audit Efficiency Matrix here: 
https://www.vimeo.com/redboard/audit-efficiency