What is the importance of documentation in demonstrating compliance?

Thorough documentation is essential for proving compliance during audits or legal reviews because it provides a detailed record of actions taken, decisions made, and processes followed. This documentation serves as evidence that an organization has adhered to relevant regulations, standards, policies, and procedures. It helps auditors or legal reviewers understand how activities were conducted, identify any discrepancies, assess risks, and ensure accountability. Additionally, comprehensive documentation can support the defense of legal claims, demonstrate due diligence, and facilitate smooth audit processes by providing clarity and transparency.