What type of audit provides a broad baseline risk assessment and identifies necessary improvements?

A retrospective audit is designed to look back at past data and events, assessing the effectiveness and compliance of processes that have already occurred. This type of audit provides valuable insights by evaluating historical performance against established standards or requirements. By examining past operations, the retrospective audit identifies areas of risk and deficiency, which is essential for understanding systemic weaknesses and determining necessary improvements.

This broad baseline risk assessment allows organizations to pinpoint specific vulnerabilities and develop strategies to address them, reinforcing their compliance efforts and enhancing overall operational integrity. A retrospective approach often uncovers patterns or trends that might not be apparent without thorough analysis of historical data. Thus, organizations can prioritize actions that will remediate issues and improve compliance moving forward.

In contrast, prospective audits focus on evaluating future operations, internal audits examine ongoing practices for efficiency and compliance, and compliance audits specifically assess adherence to regulations without the broader context provided by looking retrospectively.