Compliance Audits
Evaluating Compliance with Requirements
Compliance audits determine whether an entity has complied with applicable laws, regulations, contracts, grant agreements, and program requirements. They are commonly performed for entities receiving federal financial assistance.
- Test compliance with legal requirements.
- Evaluate internal controls over compliance.
- Report instances of material noncompliance.
- Support oversight of grant-funded programs.
Note
Compliance audits focus on whether the entity followed applicable requirements—not simply whether the financial statements are fairly presented.
Summary
Compliance audits provide assurance that organizations comply with applicable legal and program requirements.