DAT-250 Module 4 Assignment
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School
Southern New Hampshire University *
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250
Subject
Information Systems
Date
Dec 6, 2023
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docx
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2
Uploaded by SuperHumanOyster2735
DAT-250 Module Four Assignment
A compliance audit is an examination of a company's or organization's compliance with all
relevant laws, regulations, and industry standards (Donohue, 2023.) It involves reviewing
documents, conducting interviews, and performing inspections to assess compliance and identify
any areas of non-compliance.
The purpose of a compliance audit is to ensure that the company operates ethically, legally, and
responsibly. By conducting these audits, data professionals can ensure that the company meets
quality standards for data handling, storage, and protection. This helps prevent problems like
data breaches or unauthorized access to information.
A compliance audit helps the company be accountable for its actions and shows that it can be
trusted.
If audit standards are not met, it can significantly damage the company's reputation. For
example, if a company doesn't protect customer data as it should, it may lose customer trust and
face legal trouble.
When an audit finds things that aren't being done right, it can lead to changes in how the
company works. For example, if the audit shows weak security, the company may need to
implement stronger encryption protocols, improve access controls, or train employees better.
The results of an audit, whether positive or negative, can influence the company's policies. If the
audit shows the company is doing well and keeping data safe, it can reinforce existing policies.
But if the audit finds issues or non-compliance, it can make the company change and improve its
policies to ensure better data protection and regulatory adherence.
A compliance audit is important because it helps customers trust the company with their data.
When customers see that a company regularly undergoes and successfully completes compliance
audits, they feel more confident that their personal information is being handled responsibly and
securely. This builds trust between the company and its customers.
If a company fails an audit, it can have serious consequences. It may have to pay fines, face legal
actions, lose business opportunities, and damage its reputation. Sometimes, regulators can even
restrict the company's operations until it fixes the problems, which can disrupt the business and
cause financial losses.
As a result of a failed audit a company might need to change how it handles data. For example, if
the audit shows that people are accessing sensitive data without permission, the company may
need to revise its access policies, strengthen authentication measures, or implement stricter
monitoring systems to prevent unauthorized individuals from accessing sensitive information.
Citations:
J. Donohue (May 19, 2023) Diligent. “
What is a compliance audit? Definition, strategy &
reporting
”
https://www.diligent.com/insights/compliance/how-to-develop-a-compliance-audit-
strategy/
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