The COVID-19 pandemic changed almost every part of the corporate world. Those may include supply chains and operations, and even digital infrastructures and structures of workforces. One of the areas that has changed a lot is the statutory compliance auditing. 

Today, many companies are trying to choose remote work. So, they need to make some changes in fiscal policy shifts, labour laws, and more. In the post-pandemic era, this statutory compliance has become more complex than before. Also, it has been more critical. 

In this article, we will talk about the best practices for performing statutory compliance audits in the post-pandemic period.

Statutory Compliance: What Is It?

Statutory compliance is actually a legal framework. Within this, a company has to operate in terms of its financial reporting, treatment of employees, safety, taxation, and more. These laws can vary depending on different countries. However, most of them usually include corporate laws, tax laws, Environmental safety laws, social security rules, etc. Non-compliance with these laws may lead to sanctions, fines, or even reputational damage to a company.

What is a Compliance Audit?

Compliance audits are formal assessments of a company’s adherence to regulatory needs. Usually, independent audit professionals conduct compliance audits. Most of them have several interesting characteristics. Such as:

  • They must perform the task as per the regulatory requirements.
  • The task must be performed by a reliable third-party auditor.
  • They need to evaluate the in-depth posture of a company according to the needs of the compliance rules.

When a compliance audit is done, companies need to go through interviews about their internal controls. You may have to offer documents to prove that you are trying hard to carry out all types of compliance needs. 

Importance of Compliance Audits

The goal of every compliance audit can be described by two things. For example:

  • Helping the members who are involved in improving their performance.
  • Offering Certainty for all stakeholders.

Compliance audits are important because they can offer an organization a clear idea of what is happening in those places that they don’t have a direct line of sight.

These can also work as an opportunity for auditors to share their expertise with several teams. Those even include deskless and frontline employees.

Impact of the Pandemic on Compliance and Auditing

The pandemic has made a change in how people understand compliance and need to manage it. This shift includes several key developments. Such as:

  • Remote Workforces: Today, remote and hybrid models have become the standard. This can make sure that companies can follow all those complex yet important data privacy rules and labour laws.
  • Increased Regulatory Scrutiny: Governments have rolled out revised tax codes, stimulus packages, etc. Also, they even implemented important safety and health measures. All those need proper oversight. 
  • Accelerated Digitization: Companies can now adopt digital tools rapidly. This can expose to several types of new risks regarding cybersecurity and compliance.

Hence, traditional compliance audits that are usually based on fixed standards require reengineering.

Post Pandemic Best Practices for Statutory Compliance Audits

    * Using Digital Compliance Tools

In the post-pandemic era, companies must not rely on manual procedures only. This may lead to several mistakes. For the best solution, you can work with a statutory compliance company in Dahej. They can allow:

  • Centralized documentation.
  • Real-time monitoring of compliance status.
  • Remote access for auditors.
  • Automated alerts for filing legislative changes and deadlines.

    * Choose a Risk-Based Audit Approach

In this post-pandemic era, not all compliance areas have equal risk. So, you need to focus your resources where the scope for impact or breach is highest. This risk-based approach includes:

  • Ranking risks by likelihood and severity.
  • Performing a comprehensive risk assessment.
  • Tailoring audit procedures according to the company’s needs.

For instance, an organization that has a large remote workforce needs to take care of audits of hour and wage compliance, along with workplace and cyber security safety norms.

    * Ensure Readiness of Remote Audit

When you need to work on hybrid work environments, you have to be prepared for remote audits. This generally includes:

  • Using secure video conferencing for both interviews and walkthroughs. 
  • Properly maintaining digital records in cloud-based as well as centralized platforms. 
  • Training employees in efficient digital collaboration tools.
  • Ensuring secure access to both operational and financial systems.

Accurate remote audits can always save you time and cost. However, those need rigorous planning in order to maintain both credibility and effectiveness.

   * Integrate ESG into Your Compliance Audits

Social, environmental, and Governance compliance is now believed to be an important statutory matter in many jurisdictions. Now, professional auditors must evaluate:

  • Diversity in workplace and inclusion initiatives.
  • Accuracy in Environmental reporting.
  • Corporate governance and practices without bribery. 

    * Information About Changes in Rules

The post-pandemic era witnessed revision and introduction of new rules. Hence, compliance teams need to implement ongoing legal monitoring. For example:

  • Attending regulatory briefings and industry webinars.
  • Subscribing to regulatory newsletters and feeds.
  • Using AI-based tools for both tracking and mapping changes in regulations.
  • Collaborating with compliance consultants and legal advisors.

    * Update Internal Policies and Controls

The COVID-19 pandemic revealed notable gaps in a company’s internal control systems. Those usually include expense management, remote work, and even cyber security. Several best practices need:

  • Implementing layered access controls for important and sensitive data.
  • Updating and reviewing control frameworks.
  • Testing controls regularly for continuous effectiveness.

Revising important policies regarding working hours, reimbursement of remote work, and, of course, BYOD.

   * Create a Centralized Compliance Dashboard

With a centralized dashboard, you can perform real-time tracking of compliance across various geographies and functions. Hence, it must include:

  • Audit trail documentation.
  • Compliance calendar with due dates.
  • Regulatory updates by domain or region.
  • Status of corrective actions as well as non-conformities.

These types of dashboards can improve your visibility for streamlined decision-making and senior management.

    * Perform Mock Audits Regularly

With stimulated audits can help organizations to accurately evaluate their preparedness. Also, with this, companies can easily find all those hidden gaps in compliance prior to the actual audit. Hence, these audits must:

  • Cover all compliance areas with high-risk.
  • Be done semi-annually or quarterly.
  • Be done by a reliable third-party consultant or an expert internal team.

With proper mock audits, you can build resilience and even reduce the element of surprise at the time of formal inspections.

   * Collaborate Across Departments

Compliance is not the only one task of your audit team. With this, you can enjoy vital cross-functional collaboration on teams like:

  • Finance (for tax and accounting norms).
  • HR (for labour law compliance).
  • IT (for data security compliance).

    * Prioritize Cybersecurity Compliance

Nowadays, remote work faces increased issues regarding ransomware, phishing, data breaches, etc. So, statutory audits now need compliance with:

  • Cyber hygiene standards.
  • Rules for data protection.
  • Network security controls and management of IT assets.

Auditors need to assess how organizations protect their personally identifiable information or PII. This will ensure their ability to manage third-party IT issues and breach response readiness.

  • Maintain Detailed Documentation

Proper documentation is vital in any audit. So, you have to ensure that all those records are:

  • Easily accessible to authorized employees.
  • Properly digitized and then stored securely.
  • Maintained as per the timelines of statutory retention.

Your entire documentation must include corrective action plans, meeting minutes, digital approvals, etc.

  * Enhance Auditor Skillsets

Auditing during the post-pandemic era needs new competencies. Thus, you must invest in:

  • Cyber risk regulations.
  • Data analytics and digital forensics.
  • Remote audit protocols.
  • ESG disclosures and frameworks.

Some types of certifications like Certified Internal Auditor are important here.

So, now you know that statutory compliance is no longer a casual exercise. It is a very important and continuous procedure in this post-pandemic era. If you need any help with meeting regulatory standards in Dahej then you must get in touch with Trivedi Associates. To stay ahead in the competition, you have to perform successful audits on a regular basis.

Hence, to get the best possible results, you can trust a well-known statutory compliance company in Dahej.