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A compliance audit, defined as an audit which serves the purpose of ensuring that a company meets the requirements of an outside governing body, is commonplace in many industries. Any time a company has to meet licensing requirements for a governing body, either governmental or non-governmental, a compliance audit process occurs. This audit is done by either internal or external personnel.
Compliance audits, explained as the method to meeting certification requirements placed upon a business, take place for a variety of purposes. In one instance, governments require compliance audits. These could be for health code, workplace safety, and more. Furthermore, the government requires certification to prove that a business meets the standards of operation it places. Compliance audit guidelines let the business know how it can best plan for this.