ABSTRACT
Compliance audits focus on verifying that the program or process being reviewed adheres with laws, regulations policies, procedures, contracts, and other applicable obligations, such as service level agreements (SLAs) and letters of understanding (LOU). Compliance audits have been a staple of internal auditing for decades and it is a constant element in the practice of internal auditing. Internal auditors have traditionally performed financial and compliance reviews and they protect the organization from malfeasance and other poor operational, financial, and compliance practices. There is often the fear of fines and penalties for noncompliance. These can range from relatively minor sanctions and reprimands, to the loss of contracts, licenses, cease-and-desist orders, and large financial penalties. Compliance audits represent a fundamental aspect of internal audit and a key expectation from stakeholders. Every organization is subject to a variety of requirements based on geographic location, industrial sector, size, enforcement tenor, and stakeholder expectations.
