(1) There shall be a supervisory or audit committee of at least three members, which may be elected by the membership or appointed by the board, or the board may appoint an audit committee of directors in the manner prescribed in the bylaws. An officer or employee may not serve on the supervisory or audit committee.
(2) The supervisory or audit committee may audit, or cause to be audited, the financial statements of the credit union to determine compliance with policy, to ensure that generally accepted accounting principles are consistently applied, and to ensure an adequate system of internal controls.
(3) The supervisory or audit committee shall:
(a) Make or cause to be made a comprehensive annual audit of the credit union, in accordance with the rules of the commission.
(b) Make or cause to be made such supplementary audits or examinations as it deems necessary or as are requested by the board of directors or the office.
(c) Submit a report of every required audit or examination within a reasonable time to the board of directors with a copy to the office and the National Credit Union Administration.
(d) Make a summary report, to the membership at the annual meeting, of any audits or examinations conducted during the preceding year.
(4) The supervisory or audit committee shall notify the board of directors, the office, and the National Credit Union Administration of any violation of this chapter, any violation of the certificate of authorization or bylaws of the credit union, or any practice of the credit union deemed by the supervisory or audit committee to materially affect, or which may potentially materially affect, the safety and soundness of the credit union.
For the purposes of this subsection, two-thirds of the members of the supervisory or audit committee constitutes a quorum.