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CIPS L5M5 Exam - Topic 3 Question 18 Discussion

Berty Boo Ltd conducts an audit checking compliance with regulations, policies, and risk procedures. What type of audit is this?
C) Compliance audit
A) External audit
B) Third-party audit
D) Benchmarking audit

CIPS L5M5 Exam - Topic 3 Question 18 Discussion

Actual exam question for CIPS's L5M5 exam
Question #: 18
Topic #: 3
[All L5M5 Questions]

Berty Boo Ltd conducts an audit checking compliance with regulations, policies, and risk procedures. What type of audit is this?

Show Suggested Answer Hide Answer
Suggested Answer: C

Comprehensive and Detailed Explanation From Exact Extract of Documents:

A compliance audit evaluates whether an organisation adheres to regulatory requirements, security policies, and internal risk management procedures. The L5M5 study guide (p.207) highlights that this is distinct from external audits (conducted by outsiders), third-party audits (commissioned independently), and benchmarking audits (comparing against industry peers). Procurement professionals must use compliance audits to ensure suppliers meet legislative and regulatory standards, reducing risks of non-compliance, fines, and reputational damage.

Reference: Managing Ethical Procurement and Supply (L5M5) Study Guide, p.207


by Sherly at Jul 01, 2026, 06:46 AM

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Claudio
4 days ago
Agreed, compliance is key for these checks!
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Remedios
9 days ago
Really? I thought audits were more about financials.
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Margarett
14 days ago
No doubt, it's C) Compliance audit.
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Kathrine
19 days ago
I thought it might be a third-party audit.
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Tamesha
25 days ago
It's definitely a compliance audit!
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Antonio
30 days ago
Agreed, compliance is key for these checks!
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Micheline
1 month ago
Really? I thought audits were more about financials.
upvoted 0 times
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Zana
1 month ago
No doubt, it's C) Compliance audit.
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Crista
2 months ago
I thought it might be a third-party audit.
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Chauncey
2 months ago
It's definitely a compliance audit!
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Tiffiny
2 months ago
I feel like compliance audit is the right answer, but I wonder if external audits could also cover similar aspects?
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Jordan
2 months ago
I’m a bit confused; could it also be considered a third-party audit if they’re checking compliance for someone else?
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Barabara
2 months ago
I remember practicing a question about different types of audits, and compliance audits were definitely mentioned in relation to checking adherence to rules.
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Viva
2 months ago
I think this might be a compliance audit since it focuses on regulations and policies, but I'm not entirely sure.
upvoted 0 times
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