Compliance After an Acquisition

Risks after an acquisition are significant and include the risk of an ongoing fraud scheme that evades detection, as well as a risk for self-dealing, compliance culture mismatches, and controls mismatches.

Avoiding those risks requires its own risk-based approach. Domestic acquisitions that operate domestically have a lower level of risk, generally speaking. Foreign acquisitions or domestic acquisitions that operate abroad carry more significant risk.

Dealing with that risk requires mitigation that falls along a continuum. It could be that controls remediation and training are okay for small domestic acquisitions. Riskier acquisitions often require significant controls testing and remediation.