A compliance audit is a systematic review of an organization's adherence to regulatory guidelines, internal policies, and legal requirements. These audits help ensure that businesses operate within the law and follow established standards, which can include areas like financial reporting, environmental regulations, or employee safety. During a compliance audit, auditors examine records, processes, and practices to identify any discrepancies or areas for improvement. The findings can lead to recommendations for better practices and help organizations avoid potential penalties or legal issues. Regular compliance audits are essential for maintaining trust with stakeholders and ensuring long-term success.