Explain the following terms relating to compliance in banks: Compliance Audit.

Compliance Audit: A Compliance Audit is the types of audit services that their performance is mainly focusing on whether the entity complying with local law, regulation, and related rule. A compliance audit also reviews whether entity complying with internal rule, regulation, policies, decisions, and procedures. An entity required to comply with the local law and regulations or they will face with penalties or fine. Some fine is only for certain monetary amount and some fine require to close operation. Types of Compliance Audit/Review: In general, the compliance auditor performs its audit against certain requirement as follows: Local Law and Regulation: The entity need to make sure that they are operating in compliance with the law, and related law. To ensure this business might need to set up proper business procedure and processes or sometime, they might need the legal consultant to have their decision advised. Business Related regulation and framework: Besides reviewing against local law and regulation, compliance auditor might need also to review the compliance with related regulation and framework. For example, if the corporation is listed on the stock exchange outside the country that they are operating. Then they need to make sure that the entity complies with the requirement of that stock exchange requirement. Entity's policy, procedure, and Processes: Compliance auditor also performs its audit again entity's internal policy, procedure, and processes. Those internal policy and procedure are very important to the entity for sustainable growth.