The truth is, internal auditing is of the utmost importance for running a successful business. And, every effective compliance management system must include four control elements including:

  • Board and management oversight;
  • Response to consumer complaints;
  • Compliance program; and
  • Compliance audits.

In order to manage compliance responsibilities and risks successfully, all of these four control elements should be strong and well-coordinated.

And, luckily for you, the ultimate business management agency offering the best business solutions – Latitude 12 is here to help you build your internal audit program. So, if you are a business owner or a CEO looking for Norther Territory internal audit services don’t hesitate – contact Latitude 12 today!

Now, let’s dig deeper and closely discuss the last but definitely not the least important control element – the compliance audit. Here are the six key elements of an internal compliance audit program:

  1. Established Authority

Like Latitude 12, the internal auditor or the agency performing your internal audit should have the authority to do so. Without the authority needed you won’t be able to have the work done and get access to the information needed.

  1. Operational Independence

Closely linked to having established authority, you cannot perform an internal audit on your own work without being biased. In other words, the conflict of interest is unavoidable. The internal auditor shouldn’t have any operational responsibility at the company or department being audited.

  1. Policies and Procedures

Clearly set policies and procedures describing how and what to audit, i.e. describing the entire audit process, are crucial for having an effective internal audit program. Luckily, you can use the ones you already have as a basis and continue from there by simply asking yourself whether you are doing what your policies say you’re doing.

  1. Framework of Controls

In order to clearly know what you need and you’re looking for, creating a framework of controls is essential. This framework should outline exactly what and how often should you be auditing. A risk-based approach is crucial if you want to identify and make sure you are mitigating these risks properly. Thanks to auditing you will be able to find ways to improve your business. A well-established framework should determine where and how your business deals with consumers, consumers’ complaints, and all the relevant laws.

  1. Reporting Structure

Why perform an internal audit if you don’t report the results to the right person? Communicating the audit results is just as important as performing the internal audit. Hence, make sure that the Executive Management and the Chief Compliance Officer get the audit report in order to ensure that remediation steps will be taken. Plus, you’d have to create two different versions of the same report: a summary version for clients or anyone outside the company, and a detailed report for internal distribution.

  1. Remediation Process

Last in order but just as important as the others, the final step of an internal audit program is creating a detailed review which should include and specify the gaps found during auditing. This will enable you to come up with remediation steps that should be clearly documented in order to have a clear insight into the actions done to mitigate any of the found risks.

Now that you know everything needed about the internal audit program steps it’s time to get in touch with Latitude 12 and start building your program!