Plan and establish compliance management systems
Assessment task 1
Compliance is the process by which an organisation ensures that relevant external and internal requirements such as legislation, rules, guidelines, standards, codes, policies, procedures and controls are complied with. The compliance function assists the business in complying as well as gaining assurance from the business that they have complied.
Many compliance functions have traditionally covered only external requirements (external compliance).The wider definition also takes into account compliance with internal requirements (internal compliance). The wider definition is used here and both internal and external will be covered.
1. Compliance Requirements:
The objectives of internal compliance are to:
The objectives of external compliance are to:
External compliance may be achieved using a range of approaches. At the more basic level, periodic manual sign off by management of compliance with external requirements is used. More comprehensive approaches involve regular compliance attestations by a wide group of management andstaff together with inclusion of non-compliance risk into the ongoing risk and control self assessment process.
Industry compliance requirements
Last updated: Jan 2022
2. Compliance Effects:
The Charity Care has employs about 50 employees who are assisted in various charity tasks by community volunteers. Charity-Care operates two major front line community services and one service is Community-Care.
The CEO has explained the organisation has grown quickly and the management and compliance systems have not had a chance to catch up. Issues were found with the last audit and there has been some disquiet from the association’s stakeholders about the way the association has been managed – particularly with the cash handling processes and keeping of transaction records. The business manager is totally focused on providing the best possible outcomes for the clients. He is very passionate about making sure they are looked after but does not really worry too much ...
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