Compliance audit definition
/What is a Compliance Audit?
A compliance audit is an audit engagement in which the goal is to determine whether an organization is adhering to the terms of a contract or certain rules and regulations. Regulatory agencies may use compliance audits to see if a business is complying with the terms of its operating license.
Example of a Compliance Audit
For example, a compliance audit could be targeted at:
Ensuring that the terms of a bond indenture are being followed
Ensuring that the calculation and payment of a royalty are correct
Verifying that workers’ compensation pay is being properly reported