Expectations for corporate accountability and transparency has been increasing from time to time, the CARF standards provided assistance to meet all the requirements needed by the federal laws and regulation. The main objective behind corporate compliance is to secure the organizations from unwanted events of fraud activities, waste, and abuse, regardless if it’s something that is intentional or unintentional, especially if it includes federal investigation. It is easier for the organization and the associates to determine and detect unusual or unethical activities.
Corporate compliance programs were established to show response to the Federal Sentencing Reform act back in 1984, and because of this, U.S. Sentencing was developed which fully created the United States Sentencing Commission in 1987. In 2001 and 2002, there were large corporate financial scandals, which lead to the development of Sarbanes-Oxley Act which was successfully passed in 2002. Publicly-traded companies were all required to summit a yearly report of how effective their internal accounting controls to the Securities and Exchange Commission which begun in 2004. Non-profit organizations also benefited from the two provisions of the act that’s been applied.
Going back in the 1990’s, standards relating to corporate integrity, ethics, and compliance with all legitimate and regulatory requirements were applied through the different types of CARF standards manuals. By 2003, corporate compliance standards all reflected in the standards manuals of CARF.
Although several non-profit service providers are still new to the corporate compliance, these organizations are still required to conform to corporate compliance standards regardless if they receive a direct or indirect federal funds.
A stable and well-communicated code of ethics is the main core of corporate compliance program. Organization’s behavior and culture are easily defined through the said code. Organization’s leaders should set as a role model or an example to lead and reinforce their power within the organization. Code of ethics must not remain as words written on paper, thus, it must be applied in reality. The code of ethics should be reviewed, revised, and apply updates to fully develop and refine its programs. Such development also reflects the integrity and ethical practice of the organization.
Leaders should always have an excellent internal control which keeps the structure of the organization consistently standing strong. Financial aspects of an organization are one of the current examples of corporate compliance programs. However, these compliance issues may vary from different factors like health, safety, security, environment, society, employment, and delivery issues. Corporate organization who promotes outsourcing should consider proper training and education for their associates, especially if it includes relocating a business from one country to another. Bookkeeping and accounting firm play a big role in the so called code of ethics. Today, accounting software would be a great tool for bookkeepers and accountant, to make sure that financial information, records, and report are consistently correct. Cloud accounting is one of the modern ways to access online financial reports. This type of software is being hosted on remote servers. Even accounting services in Singapore uses such accounting software.