What is the primary objective of compliance auditing?

The primary objective of compliance auditing is to ensure adherence to laws and regulations. Compliance audits are specifically designed to determine if an organization is following applicable laws, rules, and policies that govern its operations. This includes evaluating compliance with statutory requirements, industry standards, and internal procedures.

The focus on adherence to laws and regulations is essential for organizations to minimize risks, avoid legal penalties, and maintain their reputation. Compliance audits serve as a proactive measure to identify any non-compliance issues and facilitate corrective actions before they escalate into larger problems.

In contrast, assessing financial performance and profitability pertains to financial audits, which focus on the accuracy and integrity of financial statements. Evaluating employee satisfaction relates to human resources assessments and is not a primary focus of compliance audits. Similarly, recommending changes in organizational structure involves organizational development and management practices, which do not fall within the scope of compliance auditing objectives.