The purpose of a compliance audit is to:

The purpose of a compliance audit is to assess adherence to legal and internal guidelines. This type of audit focuses on whether an organization is following applicable laws, regulations, and internal policies. It ensures that the organization operates within the framework established by laws, regulations, and its own guidelines, which is crucial for risk management and maintaining integrity.

Organizations are subject to various compliance requirements depending on their industry, and a compliance audit verifies that these requirements are being met. This process helps to identify areas of non-compliance, which could lead to legal issues, financial penalties, or damage to the organization’s reputation.

In contrast, evaluating an organization's profitability pertains to financial performance assessments, which are distinct from compliance audits. Improving customer relationships and identifying new business opportunities relate more to strategic growth and operational assessments rather than compliance with laws and regulations.