Audit Tips Vol. 2

Weekly Audit Tip: Why controls should not only exist on paper

Many companies invest a lot of time and money in the creation of guidelines, processes and controls. The documents are neatly structured, formally correct and often impressively comprehensive. In practice, however, it becomes clear time and again that a large proportion of these controls remain on paper – and this is precisely one of the biggest risks for a company’s audit and compliance security.

Auditors recognize very quickly whether a control system is really being put into practice or has just been “polished up” for the audit appointment. At the latest when talking to employees, carrying out spot checks in systems or reviewing evidence, it becomes clear whether controls are actually integrated into everyday operations.

Paper controls: A deceptive sense of security

“Paper controls” convey a sense of security: there are guidelines, process descriptions, checklists and procedural instructions. At first glance, everything seems to be regulated. But if these requirements are not implemented, communicated and monitored, a dangerous gap arises between aspiration and reality.

This gap has several negative effects:

1. Increased risk: Although risks are addressed in theory, they are not reduced in practice.
2. Poor audit results: Auditors not only assess the existence of controls, but above all their effectiveness.
3. Loss of trust: If employees realize that rules only exist “for the audit”, the compliance culture declines.
4. Inefficiency: A lot is documented, but little is managed and improved.

What makes effective controls

For controls to be more than just text in a document, they must fulfill four key criteria:

First: Implementation in real processes

A control is only effective if it is integrated into the actual work process. This means

• The control is assigned to a specific process step.
• It is clearly defined who is responsible.
• The control is technically or organizationally anchored in such a way that it actually takes place in everyday life.

Examples include system-enforced approvals, the dual control principle in tools, automated logging or binding checklists in operational systems.

Secondly: Communication to employees

Controls can only be effective if the people concerned know and understand them. This includes

• Role and target group-oriented communication: Who needs to know what?
• Training and awareness measures that take place regularly, not just once.
• Clarity about consequences and responsibilities.

Employees should be able to explain to an auditor in their own words how certain controls are implemented in their day-to-day work.

Thirdly: Monitoring and continuous improvement

A control system is not a static construct. Processes, systems and risks change – and so do the requirements for controls. It is therefore crucial:

• Check controls regularly: Are they still effective? Are they being adhered to?
• Establish key figures and monitoring to identify deviations at an early stage.
• systematically translate the results of audits, incidents and feedback into improvements.

This creates a living control environment that adapts to the reality of the company.

Fourth: Evidence that passes the audit

In the end, what counts in the audit is what can be proven. It is not enough to say “We do it this way” if there is no evidence. What is necessary:

• Documented results of checks (e.g. logs, reports, tickets, approvals).
• Traceable history: Who checked or approved what and when?
• Structured filing so that evidence can be found quickly in the audit.

A good control environment is always a good verification management system.

Why “documented only” controls make the audit more difficult

If controls only exist in guidelines but are not practiced, this leads to typical problems in the audit:

• Deviations between documentation and reality quickly become apparent.
• Auditors ask critical questions about the effectiveness of the management system.
• There is a risk of findings, action plans and, in the worst case, certification risks or regulatory consequences.

What’s more, the effort required to “clean up” and generate evidence shortly before an audit is enormous. Those who rely on active controls at an early stage instead reduce stress, effort and risk.

From paper to practice: How Syngenity® GmbH supports

A structured approach is needed to turn paper controls into effective controls. Syngenity GmbH supports companies with a practice-oriented range of services.

The first building block is the gap analysis and audit readiness. This involves a systematic check:

• Which controls are documented but not implemented?
• Where are clear responsibilities and process anchoring lacking?
• Which gaps are particularly critical for the next audit?

On this basis, priorities can be set and a realistic roadmap for audit preparation can be developed.

The second building block is practical implementation support. The aim here is to integrate controls into processes, systems and organization in such a way that they work in everyday life. This includes, for example:

• Adaptation of processes and roles.
• Integration of controls into existing tools and workflows.
• Support with employee communication and training.

The third building block is structured evidence collection and documentation. The aim is to ensure that every essential control is clear:

• Where is evidence generated?
• How are they stored?
• How can they be provided efficiently in the audit?

This turns a theoretical control framework into an audit-proof, comprehensible system.

Finally, Syngenity® GmbH supports the continuous improvement of the control environment. This includes regular reviews, lessons learned from audits and incidents and the adaptation of controls to new requirements.

Conclusion: From theory to actual practice

Controls that only exist on paper are more appearance than reality. They create a false sense of security, increase risk and make audits unnecessarily complicated. Effective controls, on the other hand, are integrated into processes, are known to employees, are monitored and are backed up by reliable evidence.

Those who switch from paper controls to active controls at an early stage not only strengthen their audit readiness, but also the entire compliance and safety culture in the company. Syngenity GmbH supports you in taking this step in a structured and practical manner – so that the next audit is not a burden, but proof of a truly effective management system.