A pay audit is a systematic review of an organization's compensation practices to ensure fairness and compliance with laws. It involves analyzing employee salaries, benefits, and job classifications to identify any disparities based on factors like gender, race, or age. The goal is to promote equity and address any potential issues that may arise. During a pay audit, organizations may compare their pay structures against industry standards or benchmarks. This process helps to ensure that employees are compensated fairly for their work and can also improve employee morale and retention. Regular pay audits can support compliance with regulations such as the Equal Pay Act and enhance overall workplace culture.