A compliance audit is a systematic review of an organization's adherence to regulatory guidelines and internal policies. This process helps ensure that the company is following laws, rules, and standards relevant to its industry. By identifying any gaps or areas of non-compliance, organizations can take corrective actions to avoid potential penalties and improve their operations. During a compliance audit, auditors examine various aspects of the organization, including financial records, operational procedures, and employee practices. This thorough evaluation not only helps maintain integrity but also builds trust with stakeholders, such as customers and investors, who expect the organization to operate ethically and responsibly.