A compliance audit is an independent and systematic examination of a company’s compliance with applicable laws and regulations, as well as internal and external standards of the company in terms of governance, ethics, and corporate social responsibility.
Compliance audits can cover various areas such as security practices, environmental risks, anti-corruption practices, and quality standards.
Compliance audits can have different objectives, such as:
- Assessing the effectiveness of the company’s compliance systems and processes;
- Identifying weaknesses and gaps in the company’s compliance policies, procedures, and practices;
- Assessing the risks of non-compliance with the company’s internal and external laws and standards;
- Providing recommendations to improve the company’s compliance practices.
The ultimate goal of a compliance audit is to help the company ensure that its business practices comply with applicable legal, ethical, and social standards, minimize the risks of non-compliance, and protect the company’s reputation and credibility.