September 21, 2023

Auditor V/S Compliance Officer

The difference between the auditor and the compliance officer is not always clear. There are obvious parallels, and the two have common characteristics that coincide, so it is normal to confuse them with almost fusion. In certain instances, they must work together, but there are some variations.

One interesting distinction is that an auditor will audit the tasks done by an enforcement officer and ensure they do the right thing, but that doesn’t work the other way around. This is because of the conformity officer’s position in particular to organizational and regulatory risks and the auditor’s role includes all threats to the organization.

Compliance Officer

Your compliance enforcement officer must be familiar with existing and future, possibly changing regulatory legislation. This is to set working on policies and procedures to be followed by relevant parties within or connected to the company to fulfill and prevent any possible risks.

The enforcement officer concentrates on regulatory and other criteria and then sets a robust policy and procedure to be exercised and carried forward now.

Their position is distinct to the company’s regulatory and operational risks.

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The auditor shall review the policies and procedures described and then the parties concerned shall work with them. He manages how tasks are done. Following this policy and procedural assessment, the auditor should make sure that all practices now meet this policy.

The auditor reviews existing practices, much like the Compliance Officer, and looks back to make sure that all operations are carried out according to defined policy and procedure.

His job is not distinct to the company but covers all risks to the company.

Various kinds of audits

Depending on the applicability of the business rule, various kinds of audits are available such as:

Tax Audit: The goal of the audit by section 44AB is to determine if various provisions of the Law on income tax are followed, and other requirements of the Law on income tax are fulfilled. The taxpayer’s chartered accountant’s audit in accordance with section 44AB is referred to as the tax audit. 

Statutory Audit: A statutory audit is a form of audit required to make sure that books of accounts submitted to regulators and the public are correct and fair by regulation or statute. The statutory audit is mandatory if specific business requirements are met. A trained, independent Chartered Accountant does it.

Internal Audit: Internal Audit is a company department or agency that provides an unbiased, objective analysis of structures, companies, and procedures in a company.

Concurrent Audit: Auditing financial transactions regularly and promptly shall be done annually to make sure precision, authenticity, adherence to procedures, and guidelines. The concentration of the concurrent audit is not on test checks but on substantial transaction checks.

Stock Audit: Stock audit is a term related to the checking of inventory assets in a business or organization. Depending on the motive, there are kinds of stock audits, and a different approach is needed for every stock audit.

GST Audit: GST Audit means a review of taxpayers’ returns, records, and other records. The GST audit’s objective is to determine if the turnover, the taxes charged, the ITC refund that has been claimed, and the ITC abuses referred to in the annual report are valid or fair.


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