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Compliance vs Audit: A Critical Distinction in Jordan’s Business Landscape
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As businesses operate in Jordan, they are increasingly faced with complex regulatory requirements and sanctions imposed by international bodies. In this challenging environment, it is essential for companies to ensure compliance with relevant laws and regulations to avoid legal and financial consequences.
What is Compliance?
Compliance refers to the process of ensuring that a company’s activities are in line with applicable laws, regulations, and standards. This involves implementing internal controls, monitoring transactions, and reporting suspicious activities to relevant authorities. Effective compliance measures can help reduce the risk of:
- Legal liability
- Reputational damage
- Financial losses
What is Audit?
On the other hand, audit refers to an independent examination of a company’s records and operations to ensure that they accurately reflect its financial position and performance. Audits are typically conducted by external professionals, such as certified public accountants, who review:
- Internal controls
- Accounting procedures
- Financial statements
The Distinction Between Compliance and Audit
While both compliance and audit are essential components of a well-run business, they serve different purposes.
- Compliance is concerned with ensuring that a company meets regulatory requirements.
- An audit is focused on verifying the accuracy and reliability of its financial reporting.
In Jordan, the distinction between compliance and audit has become increasingly important as the government and international organizations intensify their efforts to combat money laundering, terrorist financing, and other financial crimes. Companies operating in the country must demonstrate a strong commitment to compliance and transparency to avoid legal and reputational risks.
Expert Advisory Services at Sahouri Law
At Sahouri Law, our team of experienced practitioners provides expert advisory services on US, EU, and UN rules, regulations, and sanctions around the world. We help local and international clients ensure full compliance with international laws and regulations, including those related to:
- Specially Designated Nationals (SDNs)
- Sanctioned countries
Our comprehensive range of services includes:
- Legal consultancy and advice on regulatory and compliance frameworks
- Accurate advisory services and regulatory audits
- Strategy development and drafting in full compliance with applicable regulations
- Legal consultancy on internal regulatory matters, including:
- Conduct of directors and officers
- Internal controls
- Money laundering
- Fraud
- Bribery
Why Choose Sahouri Law?
With our deep understanding of regulations and sanctions imposed by bodies such as the European Union, the United Nations, and countries across the world, we can help businesses operating in Jordan navigate the complex landscape of compliance and audit. By working with us, companies can reduce their legal and financial risks while ensuring the long-term sustainability of their operations.
Contact Us
Contact us today to schedule a consultation or request a quotation for our services. Our team is committed to providing expert guidance and support to help your business thrive in Jordan’s dynamic market environment.