How does the compliance audit carry out ? Explain its stepwise approach.

Doing a Compliance Audit, a stepwise approach is required. That is as follows: Compliance auditor needs to have a clear Knowledge of audit's objective and scope. The auditor must figure out, for each event to be tested, just what evidence signifies compliance and what evidence signifies noncompliance. The auditor may also prepare a detailed questionnaire about key compliance issues If the auditor is not sufficiently experienced in very specialized compliance topics than the opinion of an expert should be sought. The auditor may choose a sample of events or transactions for testing when it is not practical to examine every one that falls within the scope of audit Compliance audit reports must be made in the format that is relevant to the auditee or sponsoring entity i.e. Government. Compliance audit report often indicate reasons for deviations from Standards describe implications of those deviations and recommend actions that strengthen control procedures for assuring compliance.