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Companies frequently use the internal audit and review process to verify compliance with applicable laws, regulations and internal policies. Periodic internal review and analysis can be an effective way for an organization to detect areas where it may not be fully compliant and, if necessary, take corrective actions. Companies should be mindful, though, that results of internal audits and reviews are potentially discoverable by regulatory authorities and in court proceedings. Protecting the results of internal audits from disclosure is a serious concern and it is therefore critical for counsel to consider the extent of applicable privileges and protections.

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