ACCA SBL Syllabus F. Organisational Control And Audit - Importance of compliance - Notes ^{4 / 8}

Compliance is all about ensuring that the organisation is adhering to rules, regulations, laws, codes of practice, guidelines and principles

The internal audit function is fundamentally concerned with evaluating an organisation’s management of risk.

The risk of not complying with any rules and regulations in their industry for example - thus leading to fines or reputation loss or worse

All organisations face risks.

For example, risks to the organisation’s reputation if it treats customers incorrectly, health and safety risks, risks of supplier failure, risks associated with market failure, IT risks and financial risks to name some key areas.

Internal audit can ensure that we not only comply but also that we are able to understand and force the risks before they cause non-compliance