Compliance Audit Checklist

A compliance audit checklist is a structured tool used by businesses to review and verify adherence to legal, regulatory, and internal policy requirements.

In Malaysia, it helps employers assess compliance with labour laws, payroll regulations, and statutory obligations such as Employment Act 1955, EPF (KWSP), SOCSO (PERKESO), EIS, and LHDN requirements. A checklist ensures these audits are systematic, documented, and consistent.

Generally, a checklist for compliance audit includes:

• The definition of the audit scope and goals in line with relevant regulations and company policies.
• Review of previous company compliance audits to improve policies and audit procedures.
• Review of industry-specific regulations to ensure adherence to data protection, health, safety, and financial reporting laws.
• Employee training to ensure staff is updated with compliance policies.
• Continuous monitoring of risk management strategies.
• Accurate and secure record keeping and a proper channel for reporting compliance issues.

Using a compliance audit checklist helps Malaysian employers identify gaps before they become costly issues. A structured audit process reduces risk, improves operational transparency, and supports audit readiness.

Non-compliance can lead to audits, fines, penalties, or legal action from authorities such as LHDN, EPF, or the Labour Department.