Compliance test

A compliance test is an audit that determines whether an organization is following its own policies and procedures in a particular area. An auditor engages in compliance tests in order to be assured that the evidence being reviewed as part of an audit is valid. If a compliance test reveals that the policies and procedures are functioning properly, the auditor can reduce the amount of analytical review and validation procedures that would otherwise be used. The activities commonly used in a compliance test are:

  • Asking employees about their duties
  • Observing employees in the conduct of their duties
  • Reviewing documentation to see if procedures have been followed