For every business, compliance audit is a common concern. For some it may be a new idea or concept however it is most important part of a company that will help as an ingredient for any enterprise.
By compliance audit it means that every business needs to be assured that it comply with a certain set of regulatory standards and a business has many dimensions and has to deal with so many problems and people so it is bound to follow many sets of rules. However there are some universal sets of policies that are common for all.
The most basic and essential set of policies to be followed are the one that is chalked out by government regulators. For example a business is required to put in place the work safety and health codes before venturing otherwise they will not be allowed running in the first place.
In some scenarios, a company goes for the auditing not for meeting the requirements but just to get the certification. For many corporations getting an audit certificate means to prove that they are satisfying regulations of some regulatory body. The sort of compliance audits that need to be met hinges on the nature of business and its various elements. Finance-related-firms are required to follow the rules of credit agreements, while hospitals are supposed to install proper automated system for the billing purpose so to make sure the timely reimbursements.
Before an audit can be executed, the people responsible for making ensure the compliance regulations, they need to be prepared. This should be taken on the priority basis from the very beginning of any business. Internal audits should be placed before with clear documentations in place in order to speed up and make the compliance auditing easier at the later stage of the business.
One of the reasons of the importance of audit is to help improve the performance of the system, because every system that runs in a proper way contributes to the improvement of the entire business. The more your business is compliant with regulations the more benefits you can have.
REGULATORS ARE GETTING TOUGH
The public protests that followed after any disaster including building collapse, food-contamination cases, auto-accidents and ferry-sinking incidents push the regulators to toughen the laws to deal such situations. Many other forms of poor following of the compliance such as corruption and fraud are being reported and there is a rise in the implementation actions which results in heavy fines and imprisonments.
Governments around the globe improving legislation to authorize and empower regulators in executing compliance audit; allowing them to target individually like directors, managers, compliance officers and other responsible persons; these people don’t claim to have any impunity or hide behind corporate veil.
COMPLIANCE IS THE ANSWER
With the risk of non-compliance being higher than ever, the most right approach to warrant compliance is an effective auditing procedure across the business operations. You have to look deeply at your own business to get the clear picture you need to manage.
A compliance culture in any company will help define the role and responsibilities of every individual in it and the expectation from them that they do it in the proper way and be accountable for their actions.
Accidents and any misshape can happen anytime and anywhere, but safeguarding your business from prosecution and legal proceedings, you must ensure that you have already in place all the systems and safety-measures in compliance with the regulations.
The compliance auditing activities must not be limited to the existing country, but it must encompass the business operations and relations, beyond that. That staff should be made aware that the regulations are relevant to all countries where your business operates.
So remember, auditing is a practical attitude which will bring positive change to any business and creates a safe environment for your employees, customers, staff and larger public.