Certified Quality Auditor (CQA) Prasctice Exam

Which type of audit focuses on verifying compliance with regulations and standards?

1. Financial audit

2. Internal audit

3. Compliance audit

4. Performance audit

The correct answer is: Compliance audit

The compliance audit is specifically designed to assess whether an organization is adhering to laws, regulations, policies, and procedures. This type of audit involves evaluating the effectiveness of compliance controls and provides assurance that the entity is operating within the legal and regulatory frameworks applicable to its activities. During a compliance audit, auditors review documents, conduct interviews, and test processes to ensure that the organization meets the required standards. This can include confirming that financial practices comply with financial regulations, operational practices follow industry standards, or any other applicable rules and guidelines. While financial audits, internal audits, and performance audits serve important functions within organizations, their primary objectives differ from that of a compliance audit. Financial audits focus on the accuracy and reliability of financial statements, internal audits assess the effectiveness of organizational processes and controls, and performance audits evaluate the efficiency and outcome of programs and operations.