Course Content
Develop evaluation data
Obtain and interpret information on organisation’s policies, procedures and compliance requirements. Develop evaluation methodology. Prepare evaluation plan, detailing established evaluation criteria and data to be collected. Confirm approval of plan from relevant stakeholders
Prepare and analyse evaluation data
Source required evaluation data according to evaluation plan. Organise, interpret and review collected data against established evaluation criteria. Discuss issues interpreting data and address in consultation with relevant stakeholders. Arrange evaluation data for analysis
Determine findings and reports on outcomes
Develop and discuss preliminary findings and any identified issues with relevant stakeholders. Source additional data required to clarify aspects of findings, and issues, where required. Prepare recommendations for actions to improve identified issues
BSBAUD515 Evaluate and review compliance (SINGLE UNIT)
About Lesson

To ensure a thorough assessment of an organisation’s adherence to its internal policies, procedures, and external compliance obligations, a comprehensive evaluation process is initiated. This begins with acquiring and thoroughly understanding the relevant organisational guidelines and compliance mandates.

Following this, an evaluation methodology is crafted, tailored to effectively measure the organisation’s compliance status. An evaluation plan is then meticulously prepared, outlining the specific criteria to be evaluated and the data that needs to be collected for a holistic analysis. Before proceeding with the evaluation, this plan is presented to key stakeholders within the organisation to secure endorsement, ensuring that the evaluation aligns with the organisation’s objectives and has the necessary support for successful implementation.

Compared with an audit plan

While evaluation plans and audit plans share similarities in their goals to assess and improve organisational processes, there are notable differences in their focus, scope, and execution:

  1. Purpose and Focus:
    • A compliance evaluation plan is primarily focused on assessing whether an organisation’s operations and procedures adhere to specific legal requirements, standards, or guidelines. It’s designed to ensure that the organisation is following the rules and regulations relevant to its industry or sector. The evaluation might cover areas such as environmental regulations, workplace safety, data protection, and financial compliance.
    • An audit plan, on the other hand, is a broader examination that can encompass financial audits, operational audits, or compliance audits as a subset. It aims to assess the effectiveness, efficiency, and accuracy of an organisation’s internal controls, processes, and financial reporting. Audits can be conducted to meet both internal objectives and external regulatory or certification requirements.
  2. Scope and Depth:
    • Compliance evaluation plans tend to have a narrower scope, concentrating specifically on compliance aspects. They are designed to systematically review and assess compliance with laws, regulations, and standards, identifying areas of non-compliance and potential risks.
    • Audit plans are generally more comprehensive, covering a wide range of areas within an organisation. An audit can delve deeper into financial records, operational procedures, and internal control systems, examining not just compliance, but also the efficiency and effectiveness of various practices.
  3. Process and Methodology:
    • The process for a compliance evaluation involves identifying applicable regulations and standards, reviewing the current state of compliance, assessing risks, and evaluating the effectiveness of current compliance measures. This may involve checklists, interviews, document reviews, and physical inspections.
    • An audit plan outlines the specific objectives, scope, timing, and resource allocations for an audit. It includes detailed steps for assessing the accuracy of financial statements, the efficacy of internal controls, and compliance with laws and regulations where applicable. Audit procedures often involve sampling, testing, and verification of information.
  4. Outcome and Action:
    • The outcome of a compliance evaluation is usually a report that identifies compliance gaps and provides recommendations for improvement. It might result in the development of action plans to address areas of non-compliance and reduce risk.
    • The result of an audit is an audit report that presents the auditor’s findings, opinions, and any identified issues relating to the audit objectives. It may include recommendations for improvements but focuses more on providing an independent assessment of the organisation’s practices and processes.
  5. Regularity and Scheduling:
    • Compliance evaluations are often conducted on a regular basis as determined by the regulatory environment, changes in the law, or organisational policy. They may also be triggered by changes within the organisation or its environment.

Audit plans are typically scheduled annually or as required by statutory obligations, stakeholder requirements, or internal governance policies. The timing may be influenced by the end of the fiscal year, grant requirements, or other cyclical factors.