The primary purpose of audits is to assess the effectiveness of existing systems, processes, and procedures in meeting compliance standards. This involves a comprehensive review of various aspects such as financial records, operational practices, data security protocols, and adherence to legal obligations.

Identifying gaps in compliance is crucial as it helps organizations understand areas where they may be falling short of regulatory requirements. These gaps can range from minor procedural issues to major violations that could result in legal consequences or reputational damage.

By conducting risk assessments during audits, businesses can prioritize their efforts towards addressing the most critical areas first. This enables them to allocate resources effectively and implement corrective actions that align with their overall compliance objectives.

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