What is a compliance audit?
A compliance audit is a comprehensive review process that focuses on an organization's commitment to a set of regulatory guidelines or compliance with a specific contract or contractual term.
The body that conducts the test may vary depending on the type of organization and the scope of the test. This can be done through a public account when it comes to finances and assets, a security professional for security-related compliance audits, or an IT consultant for IT infrastructure and other related compliance audits.
A compliance audit is usually carried out by public accounting firms and certified accountants are assigned to the case.
Before the start of the audit, the auditors meet with the parties named in the contract and in the contract and the accountants or auditors are given specific instructions or guidelines on what aspects they should check in the compliance check.
After the audit is complete, the auditors will meet again with those involved to discuss their results. Another type of compliance review is an internal review that is conducted to verify that employees and the various parts of the organization are following the organization's standard operating procedures.
These procedures ensure that all goods and services provided by the company meet the same standards. These internal audits are typically used by the company to help management make smart decisions.