Is essentially about comprehensively reviewing whether a company is adhering to the regulatory related guidelines or
not. IT, security and Internal audit consultants conduct an evaluation of the thoroughness and strength of preparations
pertaining to compliance. Evaluation , conduct a review of the security related policies, procedures pertaining to risk
management and user access controls throughout the compliance evaluation course.
Thus, a compliance evaluation helps in determining whether an entity is following all the rules laid down in the contract
or agreement or not. Entities enter into agreements or prepare contracts for a number of business related purposes.
These contracts and agreements are reviewed carefully and also evaluation to make sure no misstatements or fraud
exists as the entity meets the obligations pertaining to the contract. Accounting entities or a Internal audit is held
responsible for carrying out the compliance evaluation on company agreements and contracts.
What would be examined during compliance evaluation largely depends on whether the entity is a private or public
company and the data type handled by it and whether it stores or transmits important finance related data or not. For
example, healthcare companies that transmit or store records pertaining to e-health such as personal health related
information must meet HIPAA requirements. In such a case, the concerned organization must show that it is complying
with the regulations.
The compliance evaluation usually ask the CTOs, IT administrators and CIOs a number of questions during the
evaluation procedure. These questions typically revolve around the number of users that were added to the
organization and which employees left the organization. In addition to this the compliance evaluation may also ask the
names of the IT administration employees who can access crucial data.
The internal audit are generally provided with an agreement or contact for conducting compliance evaluation at a
meeting that is held between the two parties mentioned in the agreement. During the meeting, accountants are also
provided with certain guidelines on what tests they need to conduct at the time of carrying out compliance evaluation . The moment the evaluation is over, the internal audit get in touch with the parties to discuss their findings