ABRAMS GARFINKEL MARGOLIS BERGSON, LLP
Dynamic Legal Representation for You and Your Business


Compliance Internal Audit

Q: Is it permissible for my compliance department, which is independent of the operations and business units, to perform compliance-related internal audits?

A: The answer depends on the structure of the organization and the scope of the audits. An organization's compliance department cannot audit areas in which it currently maintains oversight as that would be a conflict of interest. This would remove the independence of the audit. Normally, the compliance department serves as the second line of defense with internal audit serving as the third line of defense.

In many large organizations, the compliance department conducts audits that are directly focused on compliance-related topics, and the internal audit department will review and validate their findings. The internal audit department will also review areas that were identified as issues in the compliance audits.  An internal audit program touches on areas other than compliance, such as operations, HR, accounting, IT, corporate governance, quality control, etc., whereas compliance audits focus solely on regulatory matters.


Share the AGMB Compliance Question of the Week:

Facebook   Google+   LinkedIn   Twitter

New York Attorney Advertising: This email is designed for general information only.
The information presented in this email should not be construed to be formal legal advice nor the
formation of a lawyer/client relationship. Prior results do not guarantee a similar outcome.

© Copyright 2017 by Abrams Garfinkel Margolis Bergson, LLP. All rights reserved.
This email is designed and developed by PR4Lawyers.
Facebook Twitter LinkedIn Google+ Youtube AGMB, LLP Website Neil Garfinkel Michael Barone Neil Garfinkel E-Mail Michael Barone E-Mail Marie O' Brien Marie O'Brien E-Mail