Compliance audit


A compliance audit is that auditing modality in which it is exhaustively verified that a company or institution complies with the regulations and legislation corresponding to its sector, environment or territory.

By conducting a compliance audit, many companies of all kinds have a good practice control and security tool.

This type focuses on all current legislation being respected in the economic day-to-day from an operational and administrative point of view.

Alternatively, a correct execution of this type of mechanism ensures for the
companies that their internal control works correctly, avoiding non-compliance
regulations and system failures.

Within this type of evaluations important details such as the correct one also pass
preparation or training of the workforce according to the activity carried out, the attention to the security measures established by law or the operation of the gears of the company structure according to the economic sector in which it develops its work.

Audit report

Compliance Audit Features

This audit modality has a series of characteristic features that distinguish it from other types of audit:

  • Thoroughly analyzes the total financial operations undertaken by a company or institution, as well as all administrative actions
  • This study necessarily requires the in-depth study of all existing documentation, in the form of reports or external presentations of information and with financial, legal or administrative issues.
  • It values ​​the daily business activity with the legal framework of the territory in which the company is located, looking for possible inconsistencies or anomalies
  • The internal regulations of a company are also taken into account, expressed in its statutes and codes, beyond the aforementioned territorial regulations.
  • A compliance auditor must be permanently updated, being aware of the constant changes that take place in the different sectoral, territorial or national / plurinational legislation
  • Following the detection of failures in the internal control of a company, a compliance audit should lay the foundations for its improvement or correction.
  • Despite these distinctive nuances, compliance auditing seeks the same thing as the rest of the existing expressions in the field of auditing: the improvement of the operation of commercial companies and the achievement of better levels of internal efficiency according to certain parameters or standards.

A simple example of this type of evaluation would be a study on a chemical company.

The compliance audit will observe if it operates in compliance with the legality regarding the professional training of its employees and technicians. At the same time, it is analyzed whether the waste treatment is carried out legally, to cite another key point of observation.

Tags:  Business markets derivatives 

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