Compliance & Auditors

The discipline of auditing is about creating a hypothesis, testing the hypothesis and reporting the conclusions.

The external auditor's hypothesis will concern whether the accounts show a true and fair view of the organisation's financial position.

The internal auditor's hypothesis will concern whether a system or activity meets management's objectives. They add value by providing Senior Management with an independent assurance that the organisation's objectives are being met and by acting on opportunities to improve effectiveness and efficiencies identified by the checking/audit process.

The key differences between the Audit and the Compliance Profession are:

  • Compliance is about creating management systems and operational procedures and then ensuring ongoing monitoring.
  • Compliance is a proactive activity, although compliance will also monitor lag, indicators.
  • Internal Audit is about reviewing existing systems against set criteria and determining the effectiveness of the systems and whether there is need for change.