Several businesses encounter the need to justify to the regulatory authorities that they are carrying out their normal business activities in accordance with established and safe business practices.

Merchants of precious metals need to ensure that their internal sourcing systems are able to identify, restrict and deter the procurement of their requirement from ‘red flagged countries’. This is a global initiative aimed at restricting the flow of funds to countries that are likely to allow its flow to activities that can cause or promote conflict, terrorism, wild life trade, human trafficking or narcotics.

International traders in commodities like fuel, food grains and minerals need to ascertain from a financial and procurement point of view that they are complying with the required systems and protocols while carrying out the designated functions.

Organizations relying on a huge manpower base are obliged to follow certain guidelines laid down for human resource management. The management in charge of personnel and finance are prone to sever criticism and legal actions when untoward incidences happen and the onus of proving compliance lies with the erring party, which is always assumed to be the concerned organization.

In these and several instances, a compliance review report under the ISAE 3000 is useful. It not only ensures compliance but also provides protection to the complying organizations.

The compliance is not an event that occurs on a specified date, but an ongoing process. The audit ensures compliance over a period of at least 3 continuous years and often more, because it is a continuous process.

Verico Auditing has a team that specializes in compliance audits.