Difference between revisions of "Compliance Audit"
(Compliance audit comprehensively reviews whether a company is adhering to the regulatory related guidelines or not. IT, security and independent accounting consultants conduct an evaluation of the thoroughness and strength of pertaining to compliance.) |
m (The LinkTitles extension automatically added links to existing pages (https://github.com/bovender/LinkTitles).) |
||
| Line 1: | Line 1: | ||
| − | Compliance audit is essentially about comprehensively reviewing whether a company is adhering to the regulatory related guidelines or not. IT, security and independent accounting consultants conduct an evaluation of the thoroughness and strength of preparations pertaining to compliance. Auditors conduct a review of the security related policies, procedures pertaining to risk management and user access controls throughout the compliance audit course.<ref>Compliance Audit Definition [http://www.readyratios.com/reference/audit/compliance_audit.html Ready ratios]</ref> | + | [[Compliance]] audit is essentially about comprehensively reviewing whether a company is adhering to the regulatory related guidelines or not. IT, security and independent [[accounting]] consultants conduct an [[evaluation]] of the thoroughness and strength of preparations pertaining to compliance. Auditors conduct a review of the security related policies, procedures pertaining to [[risk]] [[management]] and user access controls throughout the compliance audit course.<ref>Compliance Audit Definition [http://www.readyratios.com/reference/audit/compliance_audit.html Ready ratios]</ref> |
The auditor's objectives in a compliance audit are to:<br /> | The auditor's objectives in a compliance audit are to:<br /> | ||
| − | *Obtain sufficient appropriate audit evidence to form an opinion and report at the level specified in the governmental audit requirement on whether the entity complied in all material respects with the applicable compliance requirements; and | + | *Obtain sufficient appropriate audit evidence to form an opinion and report at the level specified in the governmental audit [[requirement]] on whether the entity complied in all material respects with the applicable compliance requirements; and |
*Identify audit and reporting requirements specified in the governmental audit requirement that are supplementary to GAAS and Government Auditing Standards, if any, and perform procedures to address those requirements. | *Identify audit and reporting requirements specified in the governmental audit requirement that are supplementary to GAAS and Government Auditing Standards, if any, and perform procedures to address those requirements. | ||
| Line 20: | Line 20: | ||
===Further Reading=== | ===Further Reading=== | ||
*Fundamental Principles of Compliance Auditing [http://www.issai.org/media/69912/issai-400-english.pdf ISSAI] | *Fundamental Principles of Compliance Auditing [http://www.issai.org/media/69912/issai-400-english.pdf ISSAI] | ||
| − | *Compliance Auditing - benefits - Reference For Business [http://www.referenceforbusiness.com/encyclopedia/Clo-Con/Compliance-Auditing.html Reference for Business] | + | *Compliance Auditing - benefits - Reference For [[Business]] [http://www.referenceforbusiness.com/encyclopedia/Clo-Con/Compliance-Auditing.html Reference for Business] |
*Compliance Audit Handbook [http://www.environment.nsw.gov.au/resources/licensing/cahandbook0613.pdf gov.au] | *Compliance Audit Handbook [http://www.environment.nsw.gov.au/resources/licensing/cahandbook0613.pdf gov.au] | ||
Revision as of 14:43, 6 February 2021
Compliance audit is essentially about comprehensively reviewing whether a company is adhering to the regulatory related guidelines or not. IT, security and independent accounting consultants conduct an evaluation of the thoroughness and strength of preparations pertaining to compliance. Auditors conduct a review of the security related policies, procedures pertaining to risk management and user access controls throughout the compliance audit course.[1]
The auditor's objectives in a compliance audit are to:
- Obtain sufficient appropriate audit evidence to form an opinion and report at the level specified in the governmental audit requirement on whether the entity complied in all material respects with the applicable compliance requirements; and
- Identify audit and reporting requirements specified in the governmental audit requirement that are supplementary to GAAS and Government Auditing Standards, if any, and perform procedures to address those requirements.
A compliance audit is based on the premise that management is responsible for the entity's compliance with compliance requirements. Management's responsibility for the entity's compliance with compliance requirements includes the following:
- Identifying the entity's government programs and understanding and complying with the compliance requirements
- Establishing and maintaining effective controls that provide reasonable assurance that the entity administers government programs in compliance with the compliance requirements
- Evaluating and monitoring the entity's compliance with the compliance requirements
- Taking corrective action when instances of noncompliance are identified, including corrective action on audit findings of the compliance audit[2]
References
- ↑ Compliance Audit Definition Ready ratios
- ↑ What is Compliance Audit? AICPA
Further Reading
- Fundamental Principles of Compliance Auditing ISSAI
- Compliance Auditing - benefits - Reference For Business Reference for Business
- Compliance Audit Handbook gov.au