COMPLIANCE AUDIT :

A compliance audit is a comprehensive review of an organization’s adherence to regulatory guidelines.

What, precisely, is examined in a compliance audit will vary depending upon whether an organization is a public
or private company, what kind of data it handles and if it transmits or stores sensitive financial data.

It is common to us that the business undertakings require some certified statement on various matters and the auditors certify such statements after carrying out audit which might be necessary under the particular cases. All such audits are called Compliance Audit. Suppose when a company applies to a bank for some loan, a certified statement showing the turnover of the company for the past two or three years along with the
current year might be necessary, and for this purpose the certified statements are to be attached with the
application, otherwise the application will be rejected. So these certified statements showing the turnover of
the company fall under the category of compliance audit. Internal audit for compliance could be more broad
base to include compliance with documented procedures/policies, compliance with statutory requirements in
the relevant areas etc.