Compliance auditing is a systematic review process that ensures an organization adheres to laws, regulations, and internal policies. This type of audit evaluates whether the company is following required standards, which can include financial regulations, safety protocols, and environmental laws. The goal of compliance auditing is to identify any gaps or weaknesses in adherence, allowing organizations to correct issues before they lead to legal penalties or reputational damage. By conducting regular audits, businesses can maintain accountability and improve their overall operational effectiveness.