Understanding an audit exercise
Successful businesses are runned with processes, standards and policies. For any ligitimate business, these elements are subjected to an audit exercise, where the truth about how transparent and clean those practices are put to the test; and this is where compliance audit comes in.
Compliance audit scrutinize any activities or processes to ensure it aligns to the set of relevant rules the business has put in place. For any discrepancies, the auditor finds out the cause and suggests ways to reconcile and prevent further divergent and endorse where applicable. This includes both the internal and external laws and regulations. Internal laws include corporate policies, plans, procedures, and bylaws that the organization created to govern its activities while external regulations are enforced by the government through regulatory bodies.
5 things that can contribute to a successful compliance audit
While some of these things might looked overwhelming to some small and medium enterprises, the fundamental here is to have a transparent culture with the right due diligence and check and balance practices are implemented at all levels.
The bottomline of a successful compliance audit
The benefits of setting up an efficient compliance audit process are immense since businesses are subject to legislation and investigation. Compliance audit not only enables organizations to identify compliance issues quickly, but it also shows the the level of integrity and the legitimacy of the business in abiding the law.
It does sound quite demanding hence in terms of finance, it’s paramount for businesses to engage a reliable bookkeeping partner to go through the financial-jungle together. Let your partner do the navigating while you stay focus towards planning and executing what matters to you – making profit for your business. We understand because we are a business too. And its accounting.