Which process involves formal inspection and verification to ensure guidelines are followed, records are accurate, and targets are met?

• A. Audit
• B. Change risk
• C. Compliance risk
• D. Environmental risk

Answer: (A)

Auditing is the formal inspection and verification of activities, records, and performance against established guidelines and targets. It provides independent assurance that processes are followed, data are accurate, and goals are being met, and it typically involves planning, gathering evidence, evaluating controls, and reporting findings to help improve governance and risk management. The other terms refer to different risk areas: change risk centers on issues arising from modifications to systems or processes, compliance risk concerns failing to meet laws, regulations, or internal policies, and environmental risk deals with risks from environmental factors. While compliance touches guidelines, auditing uniquely covers the systematic verification of both how things are done and the results produced.