Which audit type reviews adherence to laws, regulations, policies, and procedures?

Which audit type reviews adherence to laws, regulations, policies, and procedures?

• A. System-based audits
• B. Compliance audits
• C. Value for money audits
• D. Post-completion audits

Answer: (B)

Compliance audits focus on whether the organization follows applicable laws, regulations, policies, and procedures. They assess the existence and operation of controls designed to ensure adherence and promptly identify any gaps or breaches so corrective action can be taken. In contrast, system-based audits examine the overall control framework or systems in place and how well they support objectives, not solely whether the organization is complying with rules. Value for money audits look at economy, efficiency, and effectiveness of programs, rather than legal or policy compliance. Post-completion audits review outcomes after a project or program has ended, not ongoing adherence to requirements.

Compliance audits focus on whether the organization follows applicable laws, regulations, policies, and procedures. They assess the existence and operation of controls designed to ensure adherence and promptly identify any gaps or breaches so corrective action can be taken.

In contrast, system-based audits examine the overall control framework or systems in place and how well they support objectives, not solely whether the organization is complying with rules. Value for money audits look at economy, efficiency, and effectiveness of programs, rather than legal or policy compliance. Post-completion audits review outcomes after a project or program has ended, not ongoing adherence to requirements.