The COVID-19 pandemic has fundamentally changed current audit operations at credit unions. And some of those changes may have lasting strategic consequences.

At Redboard, we believe that a culture of strong compliance makes credit unions safer and more member friendly. We also believe that good planning makes for smooth audits.

These questions may help you form your mid- and post-pandemic audit process.

Furthermore, answering them now may be an important step to ensuring the continued success and resilience of your business continuity and disaster recovery plans.

1.  How do you handle in-person audits?

We’ve spoken with several credit unions, and all of them have listed branch audits as major challenges. Fortunately, we’re at a stage in the pandemic where we can perform most in-person duties safely—all it takes is an N95 mask and good hand-washing technique.

However, there may be situations in the future in which branch audits are again untenable. How will you handle on-premise audits in the future?

Will you develop workarounds? Several of our clients reported using Zoom and other video chat technology to perform cash counts. There may be other tasks that you can effectively do without being physically in the branch.

2.  What is your work from home policy?

Every credit union we’ve spoken with has moved as many people as possible to remote work. Most of them expect some level of remote work to continue.

What will your credit union look like in the future? Who must work in the branch? Who can work part time in the branch? What will your hiring practices look like if you decide that some positions can work from home as effectively as on-premise?

3.  Will you audit devices differently?

Work from home policies introduce a lot of new risk regarding devices (and PCI compliance). The fact that those devices may not be physically present could also pose challenges for audits.

How will your audit program include remote devices? How will it check on PCI compliance from home? What all will you check for?

4.  Vendor and technology management

One thing the pandemic has taught us is that many of us can do our jobs reasonably well from home. That’s all thanks to modern technology, such as Zoom, Slack, Redboard, etc.

These technologies allow people to stay connected over distance. They also raise new questions about vendor reliance, contract management, and privacy concerns.

More importantly, they introduce risk. What happens if a key vendor goes out of business, terminates its service, or has connection issues? What happens if they alter their contract or product in a way you don’t like?

FREE: Audit Checklist for Credit Unions

4 key principles and 9 questions to jumpstart your audit planning. From leading credit unions.

The Takeaway

These are extraordinary times. And, as much as we’ve all been tempted to throw up our hands and give up, we’ve also all managed to keep the ship afloat.

Moreover, it’s times like these that spur growth and change. We must adapt to the “new normal,” whatever that means.

You have undoubtedly changed some of your audit practices this year already. Download our Credit Union Audit Checklist to stay of top of any changes to your audit program—so you can be proactive in your approach!

Schedule a quick demo to see how Redboard can help you adapt to whatever 2020 cooks up next.