What is the process that assesses the effectiveness of the compliance program?

The process that assesses the effectiveness of a compliance program is best characterized as an audit. Audits are systematic examinations of records and activities, typically conducted to ensure that an organization adheres to legal and regulatory requirements, as well as its own policies and procedures. In the context of a compliance program, an audit evaluates how well compliance measures are working, identifying any areas of risk or non-compliance and providing recommendations for improvement.

The significance of conducting audits lies in their ability to provide an objective review of compliance activities. This process not only helps in identifying deficiencies but also facilitates the development of strategies for continuous improvement, thereby strengthening the overall compliance program. The audit process usually encompasses various components, including measuring adherence to established standards and evaluating the effectiveness of training and monitoring systems.

While terms like evaluation, review, and assessment may seem similar, they do not precisely capture the formal and systematic nature of an audit. An evaluation generally refers to a broader appraisal of performance against standards or objectives, a review might suggest a less comprehensive examination, and an assessment may indicate a subjective analysis without the systematic methodologies applied during an audit.