Audit and compliance are like two sides of the same coin. It is often easy to mistake one for the other. But this article is here to clarify your doubts and expel any remaining confusion. In today’s business world, both audit management software 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 own 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.
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 make sure 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 now and the future. That is, it looks into the current processes and operations. Then ensures that they are in compliance with necessary regulations and also provides that such compliance is carried forward into the future activities as well.
While that may be the case with compliance, it is not so with an audit. 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. And also assures 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 highest level governing body in the firm.
There is another distinct difference that sets audits apart from compliance. Audit inspections will be conducted on the compliance department as well to make sure that their activities are in accordance with the policies while that is not so vice versa.
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 as different as it gets.
Nevertheless, both activities must be carried out equally on the dot, as both are extremely crucial. A plethora 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.
And for that, you need a solution that can help you like no other. That would be an Audit Master. Audit Management Software introduced by us can help your audit team perform their tasks better and faster. Help make the most out of your audits by calling us right away to acquire the tools essential for the purpose.