True or False: If a compliance program does not identify problems, it indicates that the program is effective.

A compliance program's effectiveness is fundamentally tied to its ability to identify and address problems. When a program fails to uncover issues, it often signifies a lack of thoroughness in monitoring or assessing compliance within the organization. An effective compliance program should not only be proactive in preventing violations but also reactive in recognizing and correcting any that may occur.

Identifying problems is a crucial aspect of compliance because it indicates the program is functioning correctly—engaging in audits, risk assessments, and employee training which can reveal areas needing improvement. A program that does not identify any problems might be perceived as ignoring its responsibilities, which could lead to increased risk and potential legal ramifications.

A valid compliance program should strive for transparency and continual improvement, with regular assessments to uncover any compliance-related issues. Overall, the assertion that a compliance program that does not identify problems is effective is misleading; the identification of issues is a critical component of its overall effectiveness.