Regulatory audit

Professional practices such as solicitors, must comply with the requirements of their relevant regulatory bodies. We understand those requirements and will provide you with the reports you need to maintain your professional registration.

Our CAA accredited auditors specialists understand the regulations governing the handling of client money and can give you clear feedback on your systems and controls. We also provide audit services to charities, clubs and associations.

Regulatory audits differ from financial or internal audits and may cover a broad scope of areas, from risk management to testing internal controls, verifying the accuracy of accounting records and evaluating the organisation’s compliance with sector-specific regulations.

Whether working with an audit committee to assess compliance against the priorities established by board members, investors and shareholders or acting as a team of external auditors, the process can help to avoid any risk of non-compliance, avoid material errors, fraud or omissions and provide assurance.

A regulatory audit, conducted in accordance with the mandatory requirements relevant to the business, may be necessary for banks, financial services providers, legal practices, fund management firms, insurance and reinsurance providers and private equity firms.

Rather than simply verifying that financial statements present a true and fair picture, a regulatory audit will assess every aspect of the organisation against reporting requirements, guidelines and regulatory standards.

As an experienced audit assurance practice, the James Todd & Co. regulatory audit teams work with a variety of organisations and companies that need to demonstrate compliance. In some cases, a regulatory audit is compulsory, where a regulator requires the independence of a regulatory audit report to verify that a company adheres to corporate governance, risk management and reporting standards.

In others, businesses work with a regulatory audit team as an internal procedure to confirm that they are likely to meet all requisite audit regulations and to highlight risks, weaknesses or non-compliance issues the firm needs to address.

Auditors may work to ensure compliance following a previous unsatisfactory audit outcome or where a regulator has raised concerns. This process can provide objectivity in assessing whether all recommended actions have been followed and whether revised operations or improved interval controls now adhere to the applicable regulations.

Some UK-based or multinational firms must provide evidence of a regulatory audit when serving clients in other jurisdictions, with variances in the law between countries.

A regulatory audit function looks at a wide range of documentation, compliance processes, data protection and record-keeping controls, comparing each policy or approach to regulatory requirements and defining how well the organisation complies.

Organisations and businesses that engage regulatory audit firms can provide evidence of their audit report on demand or to satisfy the needs of stakeholders, quality accreditation providers and regulatory bodies.

Auditors commonly identify opportunities for greater efficiency, risk mitigation and improved profitability, using their expertise as business and finance professionals to offer guidance and recommendations within the audit report.