What is a compliance audit?

A compliance audit is defined as a systematic review of adherence to regulatory guidelines and policies. This type of audit is designed to ensure that an organization is functioning in accordance with relevant laws, regulations, and internal policies. It involves examining records, policies, procedures, and practices to determine if they meet the necessary compliance requirements.

Conducting a compliance audit often helps organizations identify areas where they may not be meeting regulations or may need to enhance their compliance efforts, ultimately protecting the organization from legal risks and the implication of non-compliance. This rigorous approach is fundamental to maintaining ethical standards and operational integrity within industries that are heavily regulated.

The other choices refer to evaluations that do not focus specifically on legislative or regulatory adherence. Random employee performance checks are more about assessing individual contributions rather than compliance with broader regulations. Informal assessments of team dynamics focus on interpersonal interactions and group effectiveness rather than strict compliance. Evaluating customer satisfaction measures how well a company meets the needs of its customers but does not directly relate to regulatory adherence or compliance policies.