What is a Compliance Audit?

 A compliance audit is a review of an employer’s compliance status with respect to the applicable statutory and regulatory guidelines and to evaluate the effectiveness of the organization’s internal controls on compliance.

Compliance audits most effectively performed by a third-party (non-employee) in accordance with the best practices for the type of audit being conducted. 

 The purpose of a compliance audit is to establish whether the employer is effectively complying with applicable rules, and to assess the effectiveness of the entity’s internal compliance controls.

The principle objectives of a compliance audit are to (1) identify applicable audit and reporting requirements, (2) perform procedures to address those requirements and, (3) obtain sufficient audit evidence to support the formation of an opinion on whether the is in compliance.

Employers generally use the results of a compliance audit to identify and remedy sources of noncompliance in an effort to avoid litigation and punitive measures of regulatory agencies like the EEOC and Department of Labor.

 There’s no one-size-fits-all approach for compliance audit preparation—it depends on your organization, the industry or niche in which you operate, and which type(s) of compliance audit is being conducted.

In general, we recommend that employers: (1) ensure their management team fully understands the organization’s legal responsibilities with respect to compliance, and (2) adopt one or more integrated compliance management platforms that support your most critical compliance initiatives.

 In addition to conducting impartial workplace investigations, our firm also conducts periodic FLSA Compliance Audits.  Find out more about our FLSA Compliance Audits by clicking here.

  In addition to conducting impartial workplace investigations, our firm also conducts periodic FMLA Compliance Audits.  Find out more about our FMLA Compliance Audits by clicking here.