Determine whether accounting personnel are following the procedures pre- scribed by the company controller.

A compliance audit is conducted to determine whether the auditee is following
specific procedures, rules, or regulations set by some higher authority. Following are
examples of compliance audits for a private business.
• Determine whether accounting personnel are following the procedures pre-
scribed by the company controller.
• Review wage rates for compliance with minimum wage laws.
• Examine contractual agreements with bankers and other lenders to be sure the
company is complying with legal requirements.
• Determine whether a mortgage bank is in compliance with newly enacted government regulations.

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