Credit Union Audit Improvement Act of 1997

Credit Union Audit Improvement Act of 1997 - Amends the Federal Credit Union Act to mandate that: (1) each insured credit union prepare an annual financial statement in conformity with generally accepted accounting principles (GAAP); (2) each credit union supervisory committee have an annual independent audit of such statement performed in accordance with GAAP standards by an independent certified or licensed public accountant; (3) each credit union prepare annually a written assertion regarding the efficacy of internal controls over financial reporting; (4) each credit union supervisory committee obtain annually an attestation report on an examination of management's written assertion prepared in accordance with GAAP by an independent certified or licensed public accountant; and (5) each credit union prepare annually a written report on the extent to which it is in compliance with the safety and soundness regulations designated by National Credit Union Administration Board.

Exempts certain small-sized insured credit unions (with assets under $10 million) from the purview of this Act.

Requires a credit union supervisory committee to: (1) identify annually any risk areas of credit union activities; (2) assess the extent to which internal and external audit coverage is necessary for credit union activities which the committee determines to have a high risk; (3) perform or supervise internal audits; (4) restrict the selection of outside auditors to certified or licensed public accountants; and (5) submit audit reports to the board of directors, the National Credit Union Administration, and its membership.

Requires an insured State credit union to include in its insurance application an agreement to maintain a supervisory committee which complies with the management oversight requirements applicable to its Federal credit union counterparts.