Regulatory

in2track and Audits

Audits, particularly those used to demonstrate compliance with third-party protocols, play a crucial role in helping companies adhere to external standards and regulations. These audits, though often voluntary, are typically required for businesses to qualify as approved vendors within certain markets or industries. They are essential for verifying that a company meets specific social compliance, environmental and governance standards (also known as ESG), among other types of audits.

The results of these audits can impact a company’s reputation, operational efficiency, and eligibility to engage in partnerships or contracts with other entities. For businesses, maintaining compliance through these audits is not just about adhering to industry standards but also about securing a competitive edge and ensuring business continuity.

The importance of these audits extends beyond mere regulatory compliance—they often influence customer trust and investor confidence. Companies that successfully pass these audits can market themselves as compliant, responsible, and trustworthy, which is increasingly important in a global market where consumers and partners prioritize ethical and sustainable practices. Failure to pass these audits can result in being barred from key markets or losing preferred vendor status, making them a critical aspect of strategic business operations.

Example of Audits

Here is a list of common types of compliance audits that can be tracked using in2track:

• Social Compliance Audits: Evaluating practices related to labor laws, worker safety, and human rights within the supply chain. This includes programs such as WRAP®, SLCP® and SMETA® (Sedex)
• Environmental Compliance Audits: Assessing adherence to environmental laws and regulations, such as emissions, waste management, and resource conservation standards.
• Data Privacy and Security Audits: Verifying compliance with data protection regulations such as GDPR, HIPAA, or CCPA, ensuring that customer and employee data is handled securely.
• Quality Management Audits: Checking for compliance with international standards like ISO 9001, which assesses the quality management systems of a business.
• Health and Safety Audits: Ensuring compliance with OSHA standards and local safety regulations to protect employees and mitigate workplace hazards.
• Financial Compliance Audits: Reviewing adherence to financial regulations and standards to prevent fraud and ensure accurate financial reporting.
• IT Security Audits: Assessing cybersecurity practices and protocols to protect company data and IT infrastructure.
• Corporate Governance Audits: Ensuring that a company’s governance practices are transparent and accountable, aligning with best practices and legal requirements.

Social Compliance, the “S” in ESG (Environmental Social and Governance) is an ever growing field. Buyers of products (and some services)
rely on Social compliance audits to ensure their suppliers operate facilities that meet laws, regulations and basic human rights. Many programs and protocols exist that provide guidelines for facility operations as well as audit processes.  Buyers, along with their legal teams and risk management functions, decide which audit protocols best supports the buyers goals and objectives for social compliance.

Audit processes are similar across the board – the auditor requests evidence from the audited facility to confirm compliance with a specific requirement.

How in2track works for social compliance

in2track comes preloaded with “Tracks” for each program or certification the user wishes to develop and monitor. Because in2track is configurable, we can add any protocol of program the user requires.

Tracks

Each Track shows the requirements of the program, along with the evidences that will demonstrate compliance with the requirement. The user will select the evidence from its file system and connect it to the requirement. In2track monitors progress and gives the user information as to the percentage completion of evidences by requirement.

in2track comes preloaded with “Tracks” for each program or certification the user wishes to develop and monitor. Because in2track is configurable, we can add any protocol of program the user requires.

Evidences

Evidences are the documents audited firms use to demonstrate compliance. in2track accepts multiple formats – .pdf, images, productivity tool formats such as Word and Google Docs, and more. Some evidences apply to more than one program. With in2track, evidences may be connected to multiple programs, simplifying the maintenance process of evidences.

Alerts

in2track generates alerts based on the expiration date of each evidence. Users will be able to update evidences and ensure readiness when the auditor come knocking. No longer must a user run on the day of the audit to secure a document that may be generated externally and complicates complying with the audit process.

Our Objective for the in2track Software

Besides making the process simple, our goal is to eliminate costly re-audits resulting from a facility’s inability to show evidences at the time of the audit. Once the auditor leaves the facility with incomplete documentation, a re-audit is triggered and additional costs incurred. With in2track, reduce these additional costs to a minimum.