From Our Blog 

Compliance Audits: What They Are, Why They Matter

Compliance audits may sound like a boring topic to dive into, but for small and mid-sized businesses they are a vital part of maintaining trust, security, and operational stability.

They’re also a strategic necessity in today’s business, ensuring your organization not only avoids stiff legal penalties, but identifies gaps in your processes and IT systems that can drag down productivity. 

At its core, a compliance audit is a comprehensive review of your organization’s ability to adhere to external laws, regulations, and guidelines created by a 3rd party such as a client, vendor, or government agency. They generally answer three questions:

 1. Is sensitive information being stored, transmitted, and protected properly?

2. Are your business processes documented and designed to meet regulatory requirements?

3. Do you have sufficient security measures and controls necessary to meet current compliance standards?

In many ways, these questions are like the ones a physician might ask you at the start of an annual check-up, only the patient is your business.

Compliance audits also provide very real benefits for small and mid-sized businesses.

First and foremost, they protect your reputation. Few things undermine trust like a data breach, after all, since customers and partners generally want to work with businesses that are committed to protecting sensitive information.

Then there’s the whole legal and financial penalties factor, which can be devastating for small and mid-sized businesses in particular. 

And finally, regular compliance audits help you improve your operational efficiency since the simple act of preparing for an audit forces you to evaluate and refine your processes.