Finance

Accounting

Business

Internal audit

Audit

Theology

Compliance (psychology)

Corporate governance

Biology

Risk analysis (engineering)

Philosophy

Paleontology

Order (exchange)

Psychology

Economics

Law and economics

Process management

Prudence

Context (archaeology)

Computer science

Social psychology

Business Ethics A European Review

The compliance‐based approach and the integrity approach have been the mainstream responses to corporate scandals. This paper proposes that, despite each approach comprising necessary elements, neither offers a comprehensive solution. Compliance and integrity, far from being mutually exclusive, reinforce each other. Working together, in a correct relationship, they build a harmonized system that yields positive synergies and which also advocates prudence ( phrónesis ). It enables the generation of a culture of compliance that tends to minimize the technical and ethical errors in decision making. In order to explore an applied harmonized approach , we analyze the audit committee, a specific and broadly accepted regulatory instrument. Formed by non‐executive members, regulation requires these members to be dedicated, qualified, and independent as a guarantee of efficiency. We show how the compound of those elements produces positive effects in a context of solid governance. We conclude that it is the strong relationship between efficiency and prudence, in the creation of a culture of compliance, which enables the minimization of errors.

Can compliance restart integrity? Toward a harmonized approach. The example of the audit committee