COMPLIANCE AND INTERNAL AUDIT
| DOI | https://doi.org/10.1108/eb024845 |
| Published date | 01 March 1995 |
| Pages | 222-227 |
| Date | 01 March 1995 |
| Author | PETER MILROY MA FCA |
| Subject Matter | Accounting & finance |
COMPLIANCE AND INTERNAL AUDIT
Received: 20th February, 1995
PETER
MILROY
MA FCA
PETER MILROY
IS THE PRINCIPAL IN CHARGE OF THE
FINANCIAL REGULATION UNIT (FRU) AT
COOPERS & I.YBRAND IN LONDON. HE
HAS A DEGREE IN
LAW
FROM
CAMBRIDGE UNIVERSITY AND
QUALIFIED AS A CHARTERED
ACCOUNTANT WITH DELOITTE HASKINS
& SELLS. THE FRU WAS SET UP IN 1987
AND IS A DEDICATED UNIT WITHIN
COOPERS & LYBRAND WHICH PROVIDES
ADVISORY SERVICES ON REGULATION
AND COMPLIANCE. PETER MILROY HAS
CARRIED OUT COMPLIANCE
ASSIGNMENTS FOR ALL TYPES OF
INVESTMENT BUSINESSES AND
REGULATORY BODIES, BOTH IN THE UK
AND OVERSEAS.
ABSTRACT
At first sight there are many similarities
between the roles of the compliance officer
and the internal auditor. However, there
are also some important differences in
their respective functions. This paper
examines a possible division of responsibil-
ities between the compliance and internal
audit departments and suggests ways in
which they might cooperate.
INTRODUCTION
If someone is not familiar with the
compliance function in today's invest-
ment business companies, an easy
way to describe the role is to say 'The
compliance officer is like a sort of
internal auditor'. Indeed, there are
many points of similarity between the
two jobs. In some organisations they
are fulfilled by the same person, and
in many more cases compliance and
internal audit report to the same
director.
However, there are also fundamen-
tal differences in the scope of the two
roles and in the range of skills which
staff need to fulfil them. It is impor-
tant to recognise these differences so
that both tasks may be carried out
efficiently and effectively. The analy-
sis can also help to identify areas
where each department can assist the
work of the other. This is necessary
in order to make best use of the
limited resources allocated to these
two departments which are often per-
ceived as non-productive.
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