When should a certifying officer start a compliance review?

A certifying officer should initiate a compliance review when there are concerns about potential non-compliance because the primary objective of such a review is to ensure adherence to applicable laws, regulations, and guidelines. This proactive approach allows the certifying officer to identify and address any issues before they escalate into more significant problems that could impact the integrity of financial operations or compliance with funding requirements.

By focusing on potential non-compliance, the certifying officer can assess risk areas and implement necessary controls to mitigate those risks. This step is crucial in maintaining the organization's accountability and transparency, particularly when dealing with federal funds or grants that have stringent compliance requirements.

While budgeting for future projects and submitting reports to stakeholders are important aspects of financial management and communication, they do not directly trigger the need for a compliance review. Similarly, preparing financial statements is a routine operation that reflects the organization's financial position and performance but does not inherently indicate compliance-related concerns. The most appropriate context for beginning a compliance review is when there are identified risks or worries regarding adherence to relevant compliance standards.