Audits should ensure compliance with which categories?

• A. Corporate requirements
• B. Legal requirements
• C. Regulatory requirements
• D. Corporate, Legal, Regulatory, Industry requirements

Answer: (D)

Audits verify adherence to all applicable requirements that govern how an organization operates. These requirements span internal corporate policies and governance practices, external legal obligations and contractual commitments, regulatory mandates from oversight bodies, and industry standards and expectations that affect risk, quality, and reputation. The strongest audit scope is to cover Corporate, Legal, Regulatory, and Industry requirements because focusing on just one area leaves gaps: internal policies alone may miss legal or regulatory breaches, while only meeting legal rules may ignore industry practices that influence risk or customer expectations. The combined categories ensure comprehensive coverage and align governance with both mandatory and widely accepted practices.