Respond to regulatory exams with poise not panic.

In the context of financial services compliance, external audit reports typically fall into four categories: unqualified (clean) reports indicating full compliance, qualified reports noting specific concerns, adverse reports identifying non compliance issues, and disclaimer reports where insufficient evidence prevents a complete evaluation. For regulatory compliance programs, certified public accountants focus less on these traditional categories and more on evaluating compliance with relevant regulations.

Skematic helps firms maintain examination-ready documentation that supports positive outcomes for both internal and external audits. By automatically capturing evidence of compliance activities, linking security policies to implementation, and maintaining comprehensive audit documentation, firms can demonstrate their program’s effectiveness to internal auditors, external compliance auditors, and key stakeholders.

A regulatory audit is a comprehensive examination of a firm’s adherence to regulatory guidelines and internal controls. For financial services firms, this often means SEC examinations, FINRA audits, or internal audits. These compliance audits assess not just the existence of compliance frameworks but their effective implementation and the firm’s ability to prevent, detect, and correct violations through proper risk assessment.

Using Skematic, firms transform their approach to the audit process from reactive to proactive. Instead of scrambling to gather evidence when compliance auditors arrive, they maintain real-time documentation of their compliance function’s operation. This includes automatic capture of user access controls, clear evidence of policy implementation, and comprehensive documentation that demonstrates program effectiveness.

The traditional 5 C’s of audit reporting – Condition, Criteria, Cause, Consequence, and Corrective action – are crucial elements in formal audits. These components help validate compliance with both internal guidelines and external regulations. However, today’s regulatory environment, including requirements like the General Data Protection Regulation and Health Insurance Portability and Accountability Act, demands more than just point-in-time assessments.

Skematic enables firms to maintain dynamic evidence of these elements through integrated workflows. Rather than just documenting issues, the platform captures the complete lifecycle of compliance activities – from creating compliance audit checklists through implementation and testing to issue resolution.

A compliance audit aims to evaluate whether an organization’s compliance function effectively meets its obligations under federal law aimed at protecting data security. For financial services firms and healthcare providers, this means assessing adherence to various requirements, including the Payment Card Industry Data Security Standard, as well as the effectiveness of internal controls and supervisory procedures.

Skematic helps firms exceed these objectives by maintaining comprehensive evidence of program effectiveness. Instead of just showing policies exist, firms can demonstrate how those policies translate into action through connected workflows, workflow automation, and clear documentation. This transforms compliance audits from point-in-time assessments into opportunities to showcase program strength.

The answer to who performs compliance audits depends on the context: regulatory examiners (like SEC or FINRA staff), internal audit teams, external compliance auditors, or consultants specializing in evaluating compliance. Whether conducting internal audits or external audits, these professionals assess how well organizations outline compliance checklists and follow regulatory guidelines.

Skematic’s platform supports all these audiences by maintaining examination-ready documentation for internal and external audits. Whether responding to previous audit findings or preparing for a final audit report, firms can quickly provide organized evidence of their compliance activities, complete with clear documentation and proof of supervisory oversight.

A compliance auditor’s role extends beyond checking boxes during a compliance audit – they assess compliance with relevant regulations, identify potential gaps in compliance procedures, and evaluate whether controls adequately address risk management. In financial services, this includes reviewing why compliance audits important for protecting against data breaches and ensuring proper user access controls.

Using Skematic, firms transform how they interact with compliance auditors by maintaining clear evidence of their compliance frameworks. Instead of reconstructing timelines or gathering scattered documentation, they can provide auditors with organized, comprehensive evidence of their internal business processes, including proof of supervisory oversight and control effectiveness.

The audit scope and compliance audit checklist vary by regulator and context but generally include: comprehensive review of internal guidelines, evaluation of data security measures, testing of implementation, and verification of supervisory oversight. For SEC-registered firms, this includes demonstrating compliance with regulations aimed at protecting investors.

Skematic helps firms exceed these requirements by maintaining real-time evidence of program effectiveness. The platform automatically captures compliance processes, links regulations to implementation, and maintains comprehensive documentation. This ensures firms always have examination-ready evidence that demonstrates their program’s strength to stakeholders.

The final audit report documents the results of evaluating compliance with regulatory requirements, including findings, recommendations, and evidence of control effectiveness. For organizations subject to the GDPR or similar compliance regulation, these reports serve as critical evidence of program oversight.

With Skematic, firms enhance their audit reporting capabilities by maintaining comprehensive, real-time evidence of compliance processes. Instead of traditional point-in-time assessments, they can demonstrate ongoing adherence to regulations through connected workflows, clear documentation of internal controls, and automatic capture of supervisory activities.

Key principles of audit reporting include accuracy, completeness, timeliness, and objectivity. Reports should clearly document how firms assess compliance, support conclusions with evidence, and provide actionable recommendations. In today’s environment, where both healthcare providers and financial institutions must protect sensitive patient health information, there’s increasing emphasis on demonstrating effective controls.

Skematic elevates these principles by maintaining comprehensive, real-time evidence of compliance activities. The platform automatically captures proof of policy implementation and maintains clear proof of work. This transforms audit reporting from a periodic exercise into an ongoing demonstration of program effectiveness.

A typical SEC examination serves as a prime example of how compliance audits important for financial services firms. Compliance auditors review internal guidelines, test implementation of automation tools, evaluate supervisory oversight, and assess overall program effectiveness.

Skematic transforms how firms approach these examinations by maintaining examination-ready documentation through daily operations. Instead of scrambling to gather evidence, firms can quickly demonstrate their compliance frameworks through connected workflows, clear documentation, and comprehensive records of compliance activities.

SEC reporting requirements vary by firm type but typically include: Form ADV annual updates and amendments, Form PF for private fund advisers, 13F holdings reports for large institutional managers, and various event-driven filings. Investment advisers must also maintain accurate records, document their internal business processes, and provide evidence of supervisory oversight to CPAs.

Skematic helps firms meet these requirements by maintaining real-time documentation of compliance processes. The platform automatically captures evidence of policy implementation, tracks filing deadlines against regulatory guidelines, and maintains comprehensive audit logs. This ensures firms can demonstrate both timely reporting and effective program operation.

While not all SEC filings require formal audits by external compliance auditors, registered firms must maintain evidence supporting the accuracy and completeness of their submissions. This often involves working with CPAs to verify financial reporting and ensure adherence to regulatory standards.

Skematic helps firms maintain this evidence through automated workflows and comprehensive documentation. By connecting security policies to implementation and capturing proof of review, firms can demonstrate the reliability of their filings and the effectiveness of their oversight processes.

Various entities must submit audited financial statements to the SEC, including registered investment companies and certain private fund advisers. Additionally, many firms voluntarily maintain audited financials to meet regulatory requirements or demonstrate operational strength to stakeholders.

While Skematic doesn’t replace formal audits, it helps firms maintain the supporting documentation needed for internal and external audits. The platform’s integrated workflows and comprehensive audit logs demonstrate the effectiveness of internal controls and compliance oversight.

An SEC audit, more commonly called an examination, is a comprehensive review of a registered firm’s compliance regulation adherence and operations. Examiners assess compliance with regulations aimed at protecting investors, evaluate the effectiveness of internal controls, and review evidence of program implementation. The audit scope may be routine, risk-based, or triggered by specific concerns about non compliance.

Skematic transforms how firms approach SEC examinations by maintaining examination-ready documentation through daily operations. Instead of reactive document gathering, firms maintain real-time evidence of their compliance frameworks, complete with clear audit logs and proof of supervisory oversight. This turns examinations from sources of stress into opportunities to demonstrate program strength.