If an organization cannot conduct a mandated audit, what should they do?

When an organization finds itself unable to conduct a mandated audit, the most appropriate course of action is to inform the regulators and seek an extension. This is crucial because regulatory compliance is essential for maintaining operational legitimacy and trustworthiness in the eyes of stakeholders. By communicating proactively with the regulators, the organization demonstrates its commitment to adhering to standards and regulations, as well as its willingness to take corrective actions when obstacles arise.

Regulators typically prefer open lines of communication and may provide guidance or extensions in cases where genuine difficulties prevent a timely audit from being conducted. This approach also helps in preserving the organization's reputation and avoiding potential penalties that might arise from non-compliance.

Hiring an external company may seem like a solution, but this can lead to additional complexity and may not be necessary if the organization is already addressing the issue with regulators. Simply postponing the audit without proper notifications or seeking an extension may result in non-compliance consequences, and conducting a simplified version could risk not fulfilling the audit's intended purposes and regulatory requirements. Therefore, notifying the appropriate authorities and asking for an extension is the most strategic and responsible action.