What is Compliance audit?
In short
A compliance audit is an engagement to report on an entity's compliance with the requirements of laws, regulations, grants or contracts, typically government programs, often performed together with a financial statement audit.
Key takeaways
- The auditor expresses an opinion on compliance with the applicable requirements for each program tested.
- Single audits include compliance audits of major federal programs.
- Materiality is assessed for each program, not for the financial statements as a whole.
Where it's tested
AUD: Attestation & System and Organization Controls (SOC) Engagements — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
A user auditor wants to rely on controls at a service organization for the entire audit period. Which report provides appropriate evidence?