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okay so for this next video lecture so our topic is about compliance audit okay so when we say compliance audit this is an audit engagement in which the goal is to determine whether an organization is adhering to the terms of contract or certain rules or regulation so the regulatory agencies will use compliance audits to see if the business or the entity is actually complying with the terms of its operating license so basically compliance audit is concerned with the how the business followed certain rules or regulations that is being imposed to them especially in terms of operations and reporting as well okay so compliance audit is an independent evaluation this is to ensure that the organization is really following the laws rules and regulations or even their internal guidelines such as their corporate corporate bylaws controls and policies and procedures so normally if in the case of a corporation aside from the financial statements sec also requires the evaluation of the corporation