Thanks to Compliance, institutions are able to conduct their operations and activities ethically, with the highest level of integrity, whilst at the same time fulfilling all of the legal and regulatory requirements (known as external requirements) and all of the industry regulations, policies and procedures adopted by firms (known as internal requirements).
Nowadays, there is no question that putting in place an efficient and effective Compliance Management System (CMS) within institutions can diminish or even nullify the risk of penalties, lawsuits or the definitive closure of businesses.
If we focus on Compliance Management Systems (CMS), the IDW AssS 980 is the standard used by German Public Auditors. Any deviation of these standards may count against them in respect of claims to damages and legal claims brought before criminal proceedings or their professional supervisory body.
This article describes the IDW AssS 980 and its basic CMS elements.