compliance-checker

name	compliance-checker
description	Validate tax compliance, audit readiness, and policy enforcement. Use when checking transactions for compliance violations, preparing for audits, or enforcing financial policies. Ensures regulatory requirements are met.

Compliance Checker Skill

Purpose

Ensures all financial activities comply with tax regulations, internal policies, and audit requirements, providing real-time compliance monitoring and audit preparation.

Triggers

• Transaction created or modified
• Invoice approved or paid
• Month-end/quarter-end closing
• Audit preparation requested
• Unusual activity detected

Capabilities

1. Tax Compliance Checks - Verify sales tax, income tax rules
2. Audit Readiness - Ensure documentation completeness
3. Policy Enforcement - Enforce company financial policies
4. Segregation of Duties - Verify role separation
5. Approval Limits - Enforce approval hierarchies
6. Fraud Detection - Identify suspicious patterns
7. Regulatory Reporting - Prepare required filings

Instructions

Tax Compliance Checks

Sales Tax Validation

// For each invoice line item
if (item.category === 'taxable_goods') {
  const expected_tax = item.amount * tenant.sales_tax_rate;
  const actual_tax = invoice.tax_amount;
  
  if (Math.abs(expected_tax - actual_tax) > 1) {  // $0.01 tolerance
    flag_compliance_issue({
      type: 'tax_compliance',
      status: 'fail',
      details: `Sales tax mismatch: expected ${expected_tax}, got ${actual_tax}`,
    });
  }
}

Expense Deductibility

Check if expense is tax-deductible:

• Business purpose required
• Receipt/invoice documentation
• Reasonable amount for category
• Not on IRS non-deductible list

Audit Readiness

Verify for each financial entity:

• Supporting documentation attached
• Approval trail complete
• Amounts reconcile
• Dates are logical
• Description is clear and detailed

Generate checklist:

{
  "entity_type": "invoice",
  "entity_id": "uuid",
  "audit_ready": true,
  "issues": [],
  "recommendations": [
    "Add more detailed description to line item 3"
  ]
}

Policy Enforcement

Common policies:

• Approval Limits - Invoices > $X require manager approval
• Dual Approval - Invoices > $Y require two approvals
• Vendor Restrictions - Some vendors require special approval
• Expense Categories - Some categories forbidden or limited
• Payment Timing - No early payments without discount

Enforcement:

function enforce_approval_policy(invoice: Invoice, user: User): boolean {
  const limit = get_approval_limit(user.role);
  
  if (invoice.amount > limit) {
    return false;  // Needs higher authority
  }
  
  return true;
}

Segregation of Duties

Verify role separation:

• Invoice creator ≠ Invoice approver
• Payment scheduler ≠ Payment executor
• Reconciliation performer ≠ Reconciliation reviewer

function check_segregation(action: string, user_id: string, invoice: Invoice): boolean {
  if (action === 'approve' && invoice.created_by === user_id) {
    flag_compliance_issue({
      type: 'policy_violation',
      status: 'fail',
      details: 'User cannot approve their own invoice',
    });
    return false;
  }
  return true;
}

Fraud Detection

Patterns to detect:

• Duplicate Payments - Same vendor + amount + date
• Round Amounts - Unusual number of round amounts (e.g., $1000, $500)
• Unusual Vendors - New vendors with large amounts
• Frequency Anomalies - Vendor invoiced twice in one day
• Amount Anomalies - Invoice 10x normal amount for vendor

Use statistical analysis and LLM for pattern detection.

Regulatory Reporting

Prepare filings:

• 1099 Forms - For contractors (payments > $600/year)
• Sales Tax Returns - Monthly or quarterly
• Income Tax Estimates - Quarterly

Compliance Checks

Check Type	Frequency	Auto-Fix	Manual Review
Tax calculation	Per transaction	No	Yes
Approval limits	Per approval	No	Yes
Segregation of duties	Per action	Block	Alert admin
Fraud patterns	Daily batch	No	Alert admin
Audit readiness	Month-end	Partial	Yes

Integration Points

• tax-classifier (AP worker) - For tax categorization
• fraud-detector (Compliance worker) - For fraud patterns
• policy-enforcer (Compliance worker) - For policy rules
• audit-trail - Log all compliance checks

Models

• Policy Rules: Deterministic (no LLM)
• Fraud Detection: Claude Opus 4-5 (pattern recognition)
• Tax Classification: Claude Sonnet 4

Security

• Compliance check results stored in compliance_checks table
• Failed checks block actions (e.g., cannot pay non-compliant invoice)
• All checks logged to audit_log
• Alerts sent to tenant_admin on failures

Outputs

Pass

{
  "compliance_status": "pass",
  "checks_performed": ["tax_compliance", "approval_limit", "segregation"],
  "issues": [],
  "timestamp": "2026-01-15T14:30:00Z"
}

Fail

{
  "compliance_status": "fail",
  "checks_performed": ["tax_compliance", "approval_limit"],
  "issues": [
    {
      "type": "approval_limit",
      "severity": "high",
      "details": "Invoice amount $5000 exceeds user approval limit $1000",
      "recommendation": "Route to manager for approval"
    }
  ],
  "action_blocked": true,
  "timestamp": "2026-01-15T14:30:00Z"
}

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Invoke this skill before any financial action to ensure compliance and after month-end to assess audit readiness.