CIPS L5M5 Exam - Topic 3 Question 8 Discussion

Actual exam question for CIPS's L5M5 exam

Question #: 8
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?

AExternal audit

BThird-party audit

CCompliance audit

DBenchmarking audit

Show Suggested 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 Nichelle at Nov 24, 2025, 03:21 PM

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Chauncey

15 hours ago

I thought it could be an external audit?

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Alishia

6 days ago

It's definitely a compliance audit!

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Amber

11 days ago

I'm going with C. Compliance audits - the fun police of the business world.

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Kenneth

16 days ago

C) Compliance audit. Because who doesn't love a good ol' fashioned audit to keep us on our toes?

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Tula

21 days ago

I'd go with C. Compliance audits are the corporate equivalent of your parents checking your homework.

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Gail

26 days ago

Definitely C. Compliance audits are like the hall monitors of the business world - making sure everyone is following the rules.

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Marcelle

1 month ago

I definitely recall that compliance audits are specifically designed to ensure adherence to rules, so I’m leaning towards option C.

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Dulce

1 month ago

I’m a bit confused; could it be an external audit too? I feel like they check for compliance as well.

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Scot

1 month ago

I remember practicing a question about different audit types, and compliance audits were specifically about adhering to laws and regulations.

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Daisy

2 months ago

This seems straightforward - a compliance audit is the right answer here. I feel pretty confident about this type of question.

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Fletcher

2 months ago

I'm a bit confused on the difference between an external audit and a third-party audit. I'll need to review those concepts before the exam.

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Jeannetta

2 months ago

Okay, I've got this. A compliance audit is when an organization checks if they're following the rules, so that's definitely what this is.

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Lanie

2 months ago

C) Compliance audit is the correct answer. This type of audit checks if the organization is following the relevant regulations, policies, and risk procedures.

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