Which type of audit focuses on ensuring compliance with regulations?

The type of audit that focuses specifically on ensuring compliance with regulations is the compliance audit. This type of audit is designed to evaluate whether an organization is adhering to applicable laws, regulations, policies, and procedures. During a compliance audit, the auditor will review documents, processes, and practices to confirm that an organization is following regulations governing its operations.

Compliance audits are crucial for organizations in heavily regulated industries, such as healthcare or finance, where non-compliance can result in legal penalties, financial consequences, and reputational damage. The thoroughness of a compliance audit helps ensure that organizations fulfill their legal and regulatory obligations and uphold standards of governance.

In contrast, operational audits concentrate on the efficiency and effectiveness of operations, financial audits primarily assess the accuracy of financial statements, and performance audits evaluate the outcomes of a program or project against its objectives. While each of these audits serves a distinct purpose, compliance audits are singularly focused on regulatory adherence.