Understanding Client Audits: Ensuring Compliance with Disclosure & Authorization Forms

At Verified First, we are committed to helping our clients maintain compliance and navigate the complexities of background screening. A key part of this commitment is our routine client audit process, specifically focusing on Disclosure and Authorization (D&A) forms. This article outlines what we look for during these audits and what the outcomes mean for you.

Our client audit process for D&A forms is designed to be straightforward and ensure adherence to crucial legal requirements. When we review your account, we are primarily looking for affirmative answers to three critical questions:

1. Do we (or you, the client) have a signed Disclosure & Authorization (D&A) Form(s) for the individual screened? This is the foundational requirement, regardless of the hiring outcome. The Disclosure and Authorization forms demonstrate that the applicant was informed about the background check and consented to it.
2. Was the D&A form signed either on or before the date the background screen was ordered? The timing of the signature is vital. The applicant must provide their authorization before a background check is initiated.
3. If the applicant is located in California, do the D&A forms contain Verified First’s contact information? California has specific requirements, and this ensures applicants know how to contact us if needed.

Our Goal: A "Yes" to All Three

Ideally, when we audit your files, we are looking for a clear "yes" to each of these questions. This indicates that your D&A form practices are aligned with key compliance standards.

We also review additional areas for best practices. Your Account Manager may reach out with additional tips and suggestions. Please remember, these statements are for suggested best practices only and shouldn't be considered legal advice.

What Happens During an Audit?

If Your Account Passes the Audit:

Congratulations! If your audited files meet all three criteria, your account will be marked as "passed." We will highlight your client record in green in our internal tracking system. This signifies that your D&A practices are currently meeting these crucial standards. Accounts that pass will not be audited again for another six months.

If Your Account Fails the Audit:

If we find that one or more of the audited files do not meet these three requirements, your account will be marked as "failed." We will highlight your client record in pink in our system.

• Education is Key: A failed audit is an opportunity for us to help you refine your processes. Our Client Management team will reach out to provide guidance and education to ensure you can make the necessary changes to your D&A form procedures.
• Missing Forms: What Happens Next? If there are no D&A forms attached to the file being audited, your record will initially be left unhighlighted. We will then reach out to you directly to request that you provide the missing D&A form(s). This is typically done via a "Needs Info" email sent through our front portal. We understand that oversights can happen, and this provides an opportunity to rectify the record.
• Tracking and Follow-Up: Addressing Unanswered Requests We allow a designated waiting period for you to respond to our Audit request and provide the requested D&A form(s). If our request for the missing D&A form(s) goes unanswered within this timeframe, the instance will then be automatically logged as a "fail." Following this, we compile the list of all client audit fails, including those resulting from unanswered requests for missing forms. This information is meticulously recorded in our "Audit Summary" sheet and the "Clients That Failed Audit For D & A Forms" sheet.

Consequences of Continual Failed Audits

We understand that adjusting processes takes time. However, consistent failure to meet D&A form requirements can lead to escalating actions to ensure compliance:

• First Month of Failed Audit: We will contact you to provide education on the importance of uploading correct Disclosure and Authorization forms. Your account will be scheduled for another audit the following month to review your progress.
• Second Consecutive Month of Failed Audit: We will again contact you to reinforce the importance of compliant D&A form practices. Your account will be audited again the following month. At this stage, we will also advise you that a third consecutive failed audit will result in your portal access for direct ordering being removed. Following a second failure, your account would be monitored daily for the next three months.
• Third Consecutive Month of Failed Audit: If an audit fails for a third consecutive month, your portal will be shut down until your Account Manager (AM) is able to discuss the critical importance and legal obligation of obtaining and providing compliant Disclosure and Authorization forms. Once your portal is reopened, your direct ordering ability will be shut down and all future orders will need to be placed using our email invitation method.  This will ensure the forms are presented and signed by the candidates electronically.  

Our aim is to work with you to avoid these escalations by ensuring your D&A processes are compliant from the outset.

Maintaining a Rolling Record:

To ensure efficiency and track progress, we maintain a "Client rolling 6 month" tab on our Audit Tracker. This tab includes a comprehensive list of both passed and failed audits. We use this record to determine if a client has been audited within the preceding six months before initiating a new audit.

Our Commitment to Partnership

These audits are an integral part of our commitment to you. They are designed not to be punitive, but rather to proactively identify areas where we can support you in maintaining compliant hiring practices. We believe in working together to ensure a smooth and legally sound background screening process for everyone.

If you have any questions about our client audit process or D&A form requirements, please do not hesitate to contact your dedicated Client Management representative.