Compliance audit

“Auditing” compliance – what is it and why is it gaining popularity?

Compliance, commonly referred to as a compliance audit, is a set of activities undertaken in the company, which are aimed at examining the level of compliance risk in the company and presenting recommendations aimed at proposing solutions to them.


What are the objectives of conducting a compliance audit?

Due to frequent changes in Polish law, the entrepreneur may not always be aware of errors or omissions both in the documentation and in the company’s operations. It is not uncommon for a company to be run legally and appear to be correct, but due to legislative changes it cannot be run in a certain way or there are numerous gaps in internal documentation. The enterprise may then not only be exposed to significant financial penalties, but also entities responsible for maintaining records are exposed to criminal liability.

What does the compliance audit procedure consist of?

Each entity that offers compliance auditing in its services performs it in a narrower or broader scope than competing companies. Most often, however, it is based on basic issues: 1. Analysis of the procedures in force in the company and internal regulations in terms of compliance with the law 2. Preparation of a report containing comments and recommendations regarding the functioning of the company 3. Presentation and implementation of new procedures and recommendations in regulations and procedures, as well as in the scope of the company’s activities.

It is worth emphasizing that the compliance audit itself is carried out ex ante, i.e. in advance, before specific events occur. The very assumptions of the compliance policy are based on the analysis of the company’s situation, risk assessment and obtaining the most effective risk control methods for the entrepreneur and taking control of risky events or events that may violate the regulations, such as incidents related to the violation of the GDPR.

How does a compliance audit differ from a “regular” internal audit?

As already mentioned, the compliance audit is designed to prevent any violations of the law and provide support in the proper functioning of the company. An internal audit, on the other hand, is carried out to show irregularities in the company’s past activities, looking at it from a critical point of view. That’s why it’s a good idea to conduct a compliance audit so as not to expose yourself to unnecessary fines or complicated administrative procedures or even criminal liability. If you would like to conduct a compliance audit of your company and ensure that it functions properly and more efficiently, as well as apply new methods to prevent any risks associated with its operation, contact the Firm.