Compliance Audit is a comprehensive check aimed at determining how well a company's activities align with Georgian legislation, regulations, and internal policies. In a constantly changing legislative environment, it is difficult for businesses to follow all rules, increasing the risk of fines, sanctions, and reputational damage. A compliance audit is not a financial audit; it is a legal "health check" covering labor, tax, data protection, environmental, and anti-corruption issues. Conducting an audit is essential before attracting investment, during reorganization, or simply for prevention to avoid violations detected by state regulators (e.g., Labor Inspection, Personal Data Protection Service).
What does the Compliance Audits service cover?
This service is a full diagnostic covering all critical business areas:
- Labor Law Audit: Checking employment contracts, timekeeping, overtime compensation, and labor safety rules.
- Data Protection (GDPR/Local Law): Analyzing data processing policies, consent forms, and security measures.
- Tax and Financial Compliance: Legal assessment of the correctness of tax declarations (together with auditors).
- Licenses and Permits: Verifying if the company holds all necessary permits for its activities (e.g., environmental, construction).
- AML (Anti-Money Laundering) Audit: Compliance with Financial Monitoring Service requirements (reporting, client identification).
Common Scenarios and Needs
A compliance audit is needed: Before Investment: A potential investor wants to ensure they are buying a "clean" company without hidden liabilities. Before Labor Inspection: The company wants to correct deficiencies before being fined by the inspection. When New Regulations Take Effect: For example, updating systems after the adoption of the new Law on Personal Data Protection. For ISO Certification: Confirmation of legal compliance is necessary to obtain international standards.
Georgian Legislation and Regulations
The audit relies on numerous legal acts, including: the Labor Code (employee rights), the Law on Personal Data Protection (data processing), the Tax Code, the Law on Facilitating the Prevention of Money Laundering, and sectoral laws (e.g., Law on Environmental Protection). Regulatory bodies (Labor Inspection, Revenue Service, Personal Data Protection Service) regularly check companies, so an internal audit is the best prevention.
Step-by-Step Process
The process begins with a documentation study (Desk Review). Lawyers check contracts, orders, and policies. Then interviews with managers and on-site observation of processes take place. Identified deficiencies (Gaps) are reflected in the audit report, accompanied by a risk assessment (high, medium, low) and recommendations for correction (Remediation Plan).
Why Legal.ge?
Ignoring risks is costly. Legal.ge gives you access to a multidisciplinary team that will check your business from all angles. We do not just look for mistakes; we offer solutions to keep your business legal and secure. Conduct an audit today to avoid fines tomorrow. Trust Legal.ge.
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