Is your organization’s Compliance Management System up to scratch — including best practices for compliance testing? Download our 8 step Guide to Implementing an Effective Compliance Testing Program below to get your compliance testing program up and running or move your current program up the maturity scale.

What is the role of testing in a Compliance Management System? 

Compliance testing is an integral part of ensuring that your organization’s Compliance Management System (CMS) is functioning as intended. Companies that operate in a regulated environment are expected to have a CMS, and testing must be performed against the regulatory requirements that impact your organization in order for a CMS to be effective. 

Why is an effective compliance testing program important?

Implementing an effective compliance testing program is of critical importance to managing your compliance risk and ensuring the health of your CMS. When you’re performing compliance testing, it is important to remember that you are testing against a rule, a regulation, a law, or a statute, which means that any finding is technically a violation of law or a statute. Identifying violations of requirements (e.g., regulatory or internal policy) and remediating the root cause in a timely manner is crucial to mitigating the compliance risk your organization is facing. Performing compliance testing in an ad hoc manner can lead to increased regulatory scrutiny, since your organization will not be able to evidence that they have a fully functioning compliance testing program.

What makes an effective compliance testing program?

Regardless of who is performing your compliance testing — whether it is your internal audit or compliance department — there are certain steps that are necessary to successfully implement an effective compliance testing process as part of your Compliance function. These steps include:

  1. Build the Requirements Library
  2. Perform the Compliance Risk Assessment
  3. Develop the Compliance Testing Methodology 
  4. Build the Testing Schedule
  5. Perform Testing
  6. Issues Management Process
  7. Validate Remediation
  8. Monitor Sustainability

Learn more about these eight steps by downloading our guide below, and put yourself in a strong position to start your organization’s compliance testing program or uplevel a current program’s maturity .

Download our free Guide to Implementing an Effective Compliance Testing Program below!

Guide to Implementing an Effective Compliance Testing Program

Joe Andryszewski
About the author: Joe Andryszewski, CIA, is a Director of Solutions Advisory Services at AuditBoard. An experienced audit and compliance professional, Joe has served as VP of Compliance Testing and Monitoring at Cenlar, and started his career in internal audit working with companies such as NRG Energy and Credit Suisse.