Discuss CIPS L5M5 Exam Topic 3 Question 18

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

AExternal audit

BThird-party audit

CCompliance audit

DBenchmarking audit

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

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26 comments · newest first

Alpha 2 days ago

External audit seems off for this.

Carylon 7 days ago

Definitely C. Regulations are key.

Lashandra 12 days ago

Yeah, it checks if they follow rules.

Wava 17 days ago

I think it's a compliance audit.

Samira 23 days ago

I feel confident about compliance audit. It’s precise.

Josefa 28 days ago

Compliance audit is the best choice here. Clear focus.

Tammy 1 month ago

External audit? Not really. Compliance is more accurate.

Elfriede 1 month ago

I lean towards external audit. But compliance seems right too.

Nan 1 month ago

Compliance audit makes sense. Focus on rules.

Tomas 2 months ago

Definitely compliance audit. It's all about adherence.

Kattie 2 months ago

Agreed! They're checking regulations and policies.

Caitlin 2 months ago

I think it's a compliance audit. Fits the description.

Claudio 2 months ago

Agreed, compliance is key for these checks!

Remedios 2 months ago

Really? I thought audits were more about financials.

Margarett 2 months ago

No doubt, it's C) Compliance audit.

Kathrine 3 months ago

I thought it might be a third-party audit.

Tamesha 3 months ago

It's definitely a compliance audit!

Antonio 3 months ago

Agreed, compliance is key for these checks!

Micheline 3 months ago

Really? I thought audits were more about financials.

Zana 3 months ago

No doubt, it's C) Compliance audit.

Crista 4 months ago

I thought it might be a third-party audit.

Chauncey 4 months ago

It's definitely a compliance audit!

Tiffiny 4 months ago

I feel like compliance audit is the right answer, but I wonder if external audits could also cover similar aspects?

Jordan 4 months ago

I’m a bit confused; could it also be considered a third-party audit if they’re checking compliance for someone else?

Barabara 4 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.

Viva 4 months ago

I think this might be a compliance audit since it focuses on regulations and policies, but I'm not entirely sure.

CIPS L5M5 Exam - Topic 3 Question 18 Discussion