What is a compliance audit?

A compliance audit is fundamentally an internal review conducted to assess an organization's adherence to applicable laws, regulations, policies, and procedures. This type of audit focuses on evaluating whether the organization is conforming to the external rules set by regulatory agencies as well as its own internal guidelines.

The primary aim of a compliance audit is to identify any gaps or shortcomings in compliance processes, thereby helping the organization to mitigate risks and avoid potential legal penalties. The audit involves a systematic examination of various operational aspects, including documentation, processes, and practices, to ensure that all regulatory requirements are being met.

This type of audit plays a crucial role in fostering a culture of compliance within the organization and serves as a proactive measure to maintain adherence to standards, rather than simply reacting to potential compliance issues after they arise.