Express Compliance Audit
Express compliance audit is an express audit of the legal security of your organization: its goal is to identify risks of violations of the legislation and business process risks related to the economic, reputational and ethical features of your business.
An express compliance audit is carried out using proprietary techniques of compliance risk identification based on the existing publicly available Russian and international developments, and check-lists of Russia's controlling and supervising authorities, which they use while conducting audits of organizations in the Russian Federation and subject to the modern norms of behaviour of business communities.
An express compliance audit of the company is performed in the following aspects:
1. Corporate compliance. Identification of risks of violations of the corporate legislation and examination of specific aspects of the general business organization.
2. Tax compliance. Identification of tax risks, risks of unplanned tax audits, additional tax assessment, and risks of criminal offences in the company.
3. Control of the company's income and expenses. Identification of risks in terms of organization of the company's income and expenses, which may have a significant impact on the company's interaction with counterparties.
4. Due diligence review of counterparties. Identification of weaknesses in the company in terms of due diligence reviews of counterparties prior to entering into contracts and agreements with them. Testing how the company complies with KYС and Due Diligence principles.
5. Fulfilment of the AML/CFT requirements (abiding by Federal Law No. 115 "On countering the legalisation (laundering) of criminally obtained incomes and the financing of terrorism"). Identification of risks related to increased attention to the company by the prosecutor’s office and other departments monitoring the compliance with Federal Law No. 115. Risk of blocking the company's bank account.
6. Compliance with data protection laws. Identification of risks pertaining to personal data protection and partially to commercial security.
7. Compliance with labour laws (staff work organization). Identification of risks of non-compliance with labour laws. Checking if the company has the basic set of documents stipulated by labour laws.
8. Compliance with occupational safety and employment protection laws. Identification of violations in terms of occupational safety and labour protection.
9. Compliance with anti-corruption laws. Identification of risks of violations and/or criminal prosecution for non-compliance with anti-corruption laws.
10. Compliance with anti-trust laws. Identification of potential risks of violations of anti-trust laws.
11. General compliance and ethics. Identification of the basis for violations in the system of regulatory, legal and ethical compliance (reputational and employment (with regard to the loyalty of employees to the management)compliance risks) and general examination of the business conduct culture in the company using methods developed, subject to the international compliance management standards and modern trends of the generally accepted ethical standards.
Express Compliance Audit Procedure
Compliance audit procedures include interviewing senior managers and designated employees of the organization (general director, chief accountant, lawyer, compliance manager, if any, and ordinary employee or several ordinary employees) together with the revision of supporting documents.
In the course of compliance audit the following documents will be reviewed:
- Constituent and corporate documents;
- All internal policies of the company (including tax and reporting policies);
- Contracts of employment and job descriptions (main types of contracts).
In the course of a compliance audit, the following is neither modified nor reviewed
- financial statements and management reports;
- commercial information.
In the course of compliance audit documents are neither copied nor seized. After the express compliance audit has been finished, we draw up a Map of identified risks and recommendations how to mitigate such risks called "Risk Map" and provide it to the Customer in the form agreed by the parties. This risk map and recommendations include general description of risks without specification with regard to certain transactions and counterparties or employees of the Customer.
In total, it takes 10 business days to conduct an express compliance audit.
Whereby:
- our specialists spend from one to three days to audit the representatives of your company in your office;
- we spend the remaining time to analyse the resulting data, after which we draw up a map of the identified risks and recommendations how to mitigate them.
