Audit and compliance are like two sides of the same coin. It is often easy to mistake one for the other. But this article would help clarify your doubts and expel any confusion. In today’s business world, both audit and compliance regulations are needed to ensure that risks are minimized. But compliance and audit focus on different aspects of the business that each has its inherent function to fulfill. In no case will one be better or more important than the other, and both are equally important to run a business profitably without falling in trouble.
Compliance Explained
There are many laws and regulations in place for companies to comply with when doing business. These regulations extend to almost all departments and can be easy to overlook. That is where compliance comes into play. Compliance seeks to ensure that all operations conform to the applicable rules and regulations that have been enforced. Any non-compliance in any department will be an issue to be addressed.
Compliance itself focuses on the present and the future. That is, it looks into the current processes and operations and then ensures that they are in compliance with necessary regulations and also provides that such compliance is carried forward into future activities as well. While that may be the case with compliance, it is not so with an audit.
An Audit Explained
Audits seek to look into the past and the present. It would go into detail and check if the past activities carried out were as they were supposed to be. Audits also assure that the present operations are also being carried out accordingly. Moreover, the Audit department usually functions independently, meaning it will usually report its findings to the firm’s highest level governing body.
There is another distinct difference that sets audits apart from compliance. Audit inspections will be conducted on the compliance department to make sure that their activities are in accordance with the policies. As you may have already experienced yourself, many tend to confuse the functions of the two departments, audit and compliance. While they have their similarities, they are quite different.
Importance of Auditing and Compliance
Nevertheless, both audits and compliance must be carried out equally on the dot as both are extremely crucial. Plenty of instances have been brought to light where many companies suffered blows due to non-compliance. The results have included a tarnished brand image and even having to pay up enormous amounts as fines. If you do not seek to go through the same fate, make compliance a priority at your workplace. The importance of audits does not fall behind either. Audit inspections can help recognize significant issues that may otherwise have been overlooked. It is critical that audit findings are thoroughly analyzed, and recommended action be taken where necessary. With technology development, audit management at organizations is easier than ever before, especially thanks to software solutions specifically tailored to audit management.
What is the Best Software Solution for Audit Management?
After substantial research on a few options, our recommendation is the Audit Management Software introduced by Harrington Group International, “Audit Master.” Audit Master software, with its many technologically advanced features and benefits, can help your audit team perform their tasks better and faster. Help make the most out of your audits by opting for an optimal solution.