lex koterie

Compliance Audit

Assurance over information in Financial Statements help to navigate complexity & brings transparent information to investors & stakeholders.

Compliance Management &
Threat Detection
Compliance Audit
Regulatory Compliance &
Streamline Audits

Compliance audit is the independent assessment of whether a given subject matter is in compliance with applicable authorities identified as criteria. Compliance audits are carried out by assessing whether activities, financial transactions and information comply in all material respects, with the authorities which govern the audited entity. It is the type of audit service that their performance or procedure is mainly focusing on whether the entity complying with local law, regulation, and related rule.

Lex Koterie LLP, simplify regulatory compliance & streamline audits through advanced compliance management & threat detection. Our professionals gain deeper insight into the enterprise’s risk posture, protect the client’s business, and comply with the regulations using advanced compliance management tooling. We inspect the source of the incident with detailed audit & compliance information for deeper insights into risk posture.

Compliance auditing may be concerned with

While regularity is the main focus of compliance auditing, propriety is equally pertinent in the public-sector context, in which there are certain expectations concerning financial management and the conduct of officials.

Top view of two women working at the same table in a cafe with laptops and smatphones.
Have any query?

Let's Connect

Purpose of Compliance Audit

Compliance audit promotes transparency by providing reliable reports as to whether funds have been administered, management exercised and citizens’ rights to due process honoured as required by the applicable authorities. It promotes accountability by reporting deviations from and violations of authorities, so that corrective action may be taken and those accountable may be held responsible for their actions. It promotes good governance both by identifying weaknesses and deviations from laws and regulations and by assessing propriety where there are insufficient or inadequate laws and regulations. Fraud and corruption are, by their very nature, elements which counteract transparency, accountability and good stewardship. Compliance audit therefore also considers the risk of fraud in relation to compliance.

The objective of compliance auditing, therefore, is to enable assessment of whether the activities of auditable entities are in accordance with the authorities governing those entities in order to express a conclusion designed to enhance the degree of confidence of the intended users.

Perspectives of Compliance Audit

Compliance audits can be part of a combined audit that may also include other aspects. Though other possibilities exist, compliance auditing is generally conducted either:

Types of Compliance Review

In general, the compliance audit performs its audit against certain requirement as follows:

Compliance Audit in relation with the audit of Financial Statements

The legislature, as an element of the public democratic process, establishes the priorities for public-sector income and expenditure and for the calculation and attribution of expenditure and income. The underlying premises of legislative bodies and the decisions they take are the source of the authorities governing cash flow in the public sector. Compliance with those authorities constitutes a broader perspective alongside the audit of financial statements in budgetary execution.

Laws and regulations are important both in compliance auditing and in the audit of financial statements. Which laws and regulations apply in each field will depend on the audit objectives. Compliance audit focuses on obtaining sufficient and appropriate evidence regarding the compliance of a given subject matter with applicable authorities identified as criteria. Whereas, in the audit of financial statements, only those laws and regulations with a direct and material effect on the financial statement are relevant, in compliance with auditing any law and regulation relevant to the subject matter may be relevant for audit.

Auditors shall follow up instances of non-compliance when appropriate.

A follow-up process facilitates the effective implementation of corrective action and provides useful feedback to the audited entity, the users of the audit report, and the auditor (for future audit planning). The need to follow up on previously reported instances of non-compliance will vary with the nature of the subject matter, the non-compliance identified, and the particular circumstances of the audit.

Years of Experience

We work with ambitious leaders who want their future to be successfull and help them achieve extraordinary outcomes.

Outstanding Service

Through our service lines, we help our clients capitalize on transformative opportunities - now, next & beyond.

Dedication to Clients

Together, we help you create lasting value & responsible growth to make your business fit for tomorrow.

Legal Consultant

You face steep compliance demands & complex changes; we help you transform your function to make a greater impact.

Professional Liability

Our professionals draw on our shared creativity, experience, judgement & diverse perspectives to reframe the future of our clients.

Looking for Legal Service With Global Quality?