Write a short note on compliance audit.

A compliance audit is a comprehensive review of an organization's adherence to regulatory guidelines. It is a process to check compliance with the provisions of various laws and rules/regulations/procedures, maintenance of books, records by an independent professional to ensure that the company has complied with the legal and procedural requirements and also followed the due processes. Objective of Compliance Audit: The objective of a compliance audit is to determine whether the auditee is following prescribed laws, regulations, policies, or procedures. These audits can be performed within a business organization for internal purposes or in response to requirements by outside groups, particularly government. The multiplicity of laws, rules, regulations etc. has necessitated the introduction of a compliance management system to ensure compliance of laws applicable to a company. This has a twofold objective: To protect the interest of all stakeholders. To avoid any legal action against the company and its management. Compliance audit reports must be made in the format that is relevant to the auditee or sponsoring entity i.e. government. Reports usually describe the objectives of the compliance audit, the number of conditions examined during the time period considered, the frequency of events conforming to conditions, and the number of exceptions.