Hindsight can be 20/20: Using Compliance Audits to Enhance Compliance and Internal Controls

I.                    The Regulators’ Expectations for a Compliance Program: Monitoring, Testing and Auditing

A.     U.S. Sentencing Guidelines

1.                   A company shall take reasonable steps “to ensure that the organization’s compliance and ethics program is followed, including monitoring and auditing to detect criminal conduct.”  U.S. Sentencing Guidelines Manual § 8B2.1 (b)(5)(A) (2009).

B.     FCPA Corporate Enforcement Policy (Justice Manual 9-47.120):

1.                   To receive full credit for timely and appropriate remediation, the corporate compliance program must include “auditing of compliance program.”