How to establish a compliance framework

1. Compliance Framework
Presented by CA Manoj Agarwal
January 19, 2013, Institute of Internal Auditors, India-
Bombay Chapter

2. Disclaimer
• All the contents of the presentation constitute the opinion of
the speaker, and the speaker alone; they do not represent the
views and opinions of the speaker’s employers, supervisors,
nor do they represent the view of organizations, businesses or
institutions the speaker is, or has been a part of.
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3. Agenda
• Framework
• Framework for Compliance
• Q&A
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4. Definitions
frame·work
/`frām, wərk`/
Noun
1. An essential supporting structure of a building, vehicle, or
object.
2. A basic structure underlying a system, concept, or text: "the
theoretical framework of political sociology".
Synonyms
• frame - skeleton - structure - carcass - cadre – shell
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5. What do you see here?
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6. Components of a Framework
Components Policy Process People
Input Tone at the top Laws Org Charts.
Organization Policies
Industry best
practices
Process What are our values How we will do what Do we know what we
and principles we want to do are supposed to do?
What do we want to When we will do
do Where we will do
Why we want to do Who will do it
Output Policy Compliance Checklist Role-Responsibility-
Compliance Calendar Authority-
Compliance Manual Accountability
Records and decisions Training
PDCA Update Policy Update processes Provide Training

7. Policy
• What are our values
• What is our principles
Share the fruit
Equal of enterprise
Anti Discrimination
Opportunity
Minimum wages
Standard Salary Structure
Payment of Bonus Act
Shop and establishment Acts
PF
ESIC/ WCA/Mediclaim
Follows the Treat workers
laws of the fairly
land

8. Process - Compliance Manual
Index
Sl. No Acts/ Regulations covered Category Overall responsibility
Act wise compliances
Sr No. Act/ Rules/ Category Reference Legal Statutory Frequency Effect of
Regulation (Sections/ Provisions Filings / Time contravent
s/ Scheme Rules/ Limit ion/
Regulation default
s)

9. Process - Compliance Checklist
Compliance for the month of______________
Sr. Activities Responsi Sections/ Act/ Complian Authority Date of
no. bility Rules/ Rules/ ce Due complian
Regulatio Regulatio Date ce
ns) ns/
Scheme
Sr No. Act/Rules/ Category Reference Legal Statutory Frequency/ Effect of
Regulation (Sections/ Provisions Filings Time Limit contraventi
s/Scheme Rules/Reg on/default
ulations)

10. Process - Compliance Checklist
Compliance for the month of______
Are we Gap Corrective Preventive
Compliant Analysis Measure Measures
PDCA Cycle

11. People
• Role-Responsibility-Authority-Accountability Matrix
• Segregation of Duty
• Training

12. Principles of Internal Controls
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13. Process
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14. People
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15. Tools
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16. Issues
• Business vs compliance
• Common Definition – lack of
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17. Recap
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18. Q&A
Resources
https://www.unifiedcompliance.com/
Contact details
Manoj Agarwal
manojbagarwal@gmail.com
+91 9820392252
http://in.linkedin.com/in/manojbagarwal/
http://www.slideshare.net/manojbagarwal/presentations
@amanojca
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