Ep. 59: Why Every Cannabis Operator Needs an Audit Program

🎙In this episode of Under the Microscope with Jenny, host Jenny Germano takes a deep dive into why every cannabis operator should have a compliance audit program and how an important tool like proactive auditing can help reduce risk, improve operations, and strengthen overall compliance.

Drawing on her hands-on experience in cannabis operations since 2009 and consulting operators nationwide, Jenny breaks down what a compliance audit is, how it differs from a regulatory inspection, and why audits should be viewed as a preventative tool rather than a reaction to enforcement. She covers the different types of cannabis audits, including internal reviews and third-party assessments, and discusses key focus areas such as Metrc and inventory reconciliation, SOPs, employee training records, security systems, recordkeeping, labeling, and OSHA compliance.

Jenny also explains how regular audits can identify operational gaps before they become violations, recalls, or costly fines, and why CAPA (Corrective and Preventive Action) programs are essential for addressing root causes and driving continuous improvement. This episode delivers practical guidance for cannabis operators looking to build a stronger compliance culture, reduce their circle of risk, and stay prepared for evolving regulations and enforcement trends.

 

🌿𝗢𝘂𝗿 𝗛𝗼𝘀𝘁: Jenny Germano, Founder of ICS Consulting

🌎 𝗜𝗖𝗦 𝗖𝗼𝗻𝘀𝘂𝗹𝘁𝗶𝗻𝗴: https://www.icsconsultingservice.com

 

⏰𝗧𝗶𝗺𝗲𝘀𝘁𝗮𝗺𝗽𝘀⏰
  02:10 What Compliance Audits Are
 04:02 Audits vs Inspections
 07:17 Risk Reduction & The Benefits
 09:08 Enforcement Trends & Costs
 12:28 Inspections Differ by State
 15:49 Why Audits Matter in Practice
 19:28 What Operational Gaps Audits Reveal
 22:20 Types of Cannabis Audits
 26:04 Regulatory Inspections
 27:29 Metrc Inventory Audits
 28:27 SOPs & Material Changes
 29:44 Employee Training
 35:32 OSHA Safety Compliance
 38:33 Recordkeeping Systems
 39:30 Common Audit Findings
 40:17 Audit Frequency Schedule
 42:37 Build Audit Program
 43:50 CAPA - Corrective and Preventive Action
 46:28 Audits as a Strategy
 47:34 Taking Responsibility
 51:27 Final Thoughts & Wrap Up

 

𝗟𝗲𝗴𝗮𝗹 𝗗𝗶𝘀𝗰𝗹𝗮𝗶𝗺𝗲𝗿: The content shared on this channel - including all videos, podcasts, interviews, and discussions is provided for educational and informational purposes only. It is not intended as legal, compliance, or business consulting advice, and should not be relied upon as such. Laws and regulations surrounding cannabis and related industries vary by jurisdiction and are subject to change. Always consult with a qualified attorney or licensed professional before making decisions that could have legal or regulatory consequences for your business. Listening to or viewing this content does not create a client relationship between you and ICS Consulting, Under the Microscope with Jenny, Jenny Germano, or any of the podcast’s guests. Any opinions expressed are those of the individual speakers and do not necessarily reflect the views of ICS Consulting or its affiliates.