Compliance Audit

A main objective of conducting an internal or external compliance audit is to assess the overall effectiveness of a business's compliance practices and protocols. While examining processes and transactions, a compliance auditor must determine whether the item being examined complies with established standards.

A compliance audit is a comprehensive review of an organization's adherence to regulatory guidelines. Audit reports evaluate the strength and thoroughness of compliance preparations, security policies, user access controls and risk management procedures over the course of a compliance audit.

Compliance auditing is something business with strict regulatory management systems should be doing regularly. Essentially, compliance auditing review and checks whether a company or organization is in line with the correct regulations. For example, financial institutions and freelancers like banks, freelance accountants, and financial advisors as well as certain solicitors and other consultants need to be up to date with the rules and regulations governing their industries.