Compliance Audit: Definition, Characteristics, Objectives, Importance and MORE

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The Compliance audit it will be a comprehensive review of everything that has to do with an organization’s adherence to regulatory guidelines. This means that the audit reports will evaluate the soundness and completeness of compliance preparations, security policies, among others.

In this article we will explain everything that has to do with the compliance audit. What is it, what is its importance, what are the steps to follow and much more Remember to share this information with your family and friends! Keep reading.

What is the Compliance Audit?

The Compliance audit It is known as the confirmation or scrutiny of those financial, administrative, economic and other operations of a company. With this, a series of applicable legal, regulatory, statutory and procedural rules may be established.

The Compliance audit It must be carried out by reviewing the documents that legally, technically, financially and accountingly support the operations. This in order to be able to determine if the procedures used and the internal control measures are in accordance with the standards that are applicable to it.

The responsibility of compliance will fall directly on the Administration, they must ensure that the operations of the company are directed in accordance with the laws and regulations. By conducting a compliance audit, a good practice control and security tool can be obtained.

So, we have to Compliance audit It is that auditing modality in which it will be thoroughly verified that a company or institution complies with the regulations and legislation corresponding to its sector, environment or territory.

This type of audit is basically focused on ensuring that all current legislation is respected in the economic day-to-day from an operational and administrative point of view. Likewise, a correct execution of this type of mechanism should assure your company that its internal control works correctly.

In this way, we will be able to avoid any type of regulatory breach or failures in the system. Within these types of evaluations we will also have important details such as the correct preparation or training of the staff according to the activity carried out.

We must bear in mind that proper attention must be paid to the security measures that are established in the law or the operation of the gears of the company’s structure. In this way, we will be serving the economic sector in which this work is carried out.

Characteristics of the Compliance Audit

The Compliance audit It is also known as that examination of financial, administrative, economic and other operations in order to establish that it has been carried out in accordance with the applicable legal, statutory and procedural norms.

The Compliance audit It has different characteristics, this will allow it to be differentiated from the other types of audits Next, we will explain what these characteristics are.

  • You must comprehensively analyze the total financial operations undertaken by a company or institution, as well as any administrative action.
  • This study turns out to be very necessary due to the deep study that is carried out. In addition, a study is made of all the existing documentation, in the form of reports or external presentations of information and with financial, legal, or administrative issues.
  • This may value the daily business activity with the legal framework of the territory in which the company is going to be located. Searching, in this way for possible inconsistencies or anomalies.
  • Likewise, everything related to the internal regulations of the company is taken into account. This will be expressed in status and codes, beyond the territorial regulations explained above.
  • A compliance auditor must be permanently updated, being aware of the constant changes that take place in different sectoral, territorial or national legislation.
  • The detection of failures in the internal control of a company is followed. A compliance audit should lay the foundations for its improvement or correction.
  • The compliance audit seeks the same as the rest of the existing expressions in the field of auditing.
  • It seeks to improve the functioning of commercial companies and the achievement of the best levels of internal efficiency according to certain parameters or standards.


The Compliance audit It allows promoting transparency by presenting reliable reports on reliable reports on whether the funds have been administered, whether the administration has been exercised, and whether the right of citizens to due process has been honored.

Likewise, it must promote accountability when reporting deviations and violations in respect of what is indicated by the authorities. Therefore, some corrective action must be taken to hold those responsible to account for their actions.

Fraud and corruption are by nature elements that are going to be opposed to transparency. The Compliance audit will promote good governance in the public sectors by considering the risk of fraud in relation to compliance with laws and regulations. As well as insufficient or inadequate regulations.

Scope of the Compliance Audit

The scope of a compliance audit is understood to be the depth of an in-depth audit. This will clearly depend on the objective that is had at the time of carrying out said audit. These audits are carried out for various purposes, either:

  • Regular reviews of company records.
  • Internal error detection.
  • Detection of fraud within a company.
  • Non-compliance with regulations.

Due to this fact, the scope and objectives of an audit will have a different meaning depending on the person conducting the audit. Therefore, we are going to understand that the scope of the audits is known as the amount of time and documents that are to be found in an audit.

The scope of the Compliance audit it can range from the simplest to the most complicated. This will understand the different volumes of company documents. Based on the scope, the audit procedures considered necessary in the circumstances to achieve the audit objective are defined.

These should be determined by the auditor taking into account all the requirements of the International Auditing Standards. According to the definitions of the ISO standards, the scope will include the following:

  • Topics.
  • Segments.
  • Activities that are the subject of it.

Generally this will include a short description of the locations, be it physical, organizational units, activities and processes, as well as the time period covered. It says when the audit will be carried out (start and end date), what or who will be audited and where it will be carried out.

Steps to Perform the Compliance Audit

We know that the purpose of Compliance audit it is to examine precisely everything that has to do with an organization. For example, if it is private or public, what types of data does it handle and if it transmits or stores financial data reliably.

In each case, organizations must be fully capable of demonstrating compliance by producing an audit report. Next, we will briefly explain the procedure to be followed to carry out a compliance audit. Be very attentive, this information is extremely important!

  1. A meeting begins between the company representatives and the compliance auditors.
  2. Next, the compliance checklists, guidelines and scope of the audit should be outlined.
  3. The auditor should carry out:
    1. Employee performance.
    2. Study of internal controls.
    3. Evaluate the documents.
    4. Check the compliance in the different areas and departments.
  4. Next, auditors should ask managers a series of questions, for example:
    1. Which users were recently added and when.
    2. Which administrators have access to critical systems.
    3. Who has left the company.
  5. The auditors then review the compliance processes and create a final audit report.

Compliance auditors must provide a number of details to company leaders about the organization’s level of compliance, violations, and suggestions for improvement. All this will be very important for the administrators of said company.


The Compliance audit, whether internal or external, will help the company to identify the weaknesses that it may have in the compliance processes. In this way, we proceed to create ways of improvement. In some cases, guidance provided by a Compliance audit can help reduce risks.

In turn, potential legal problems or federal fines for non-compliance could be avoided. Like the laws that drive them, compliance programs must be in constant flux as existing regulations evolve and new ones are implemented.

The Compliance audit, you will provide an overview of all internal business processes that can be changed or improved as regulations and requirements change. It should be noted that the auditor must be completely professional, with principles and values.

Thanks for reading!

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