What should the audit program aim to avoid?

The audit program should focus on avoiding regulatory compliance issues because these can have significant legal and financial consequences for an organization. Non-compliance with regulations can lead to penalties, fines, damage to reputation, and potential operational restrictions. By ensuring that all aspects of the organization adhere to relevant laws and regulations, the audit program safeguards the organization against these risks, promotes ethical standards, and supports sustainable operations.

While it is important to also consider the other choices in the context of an audit program, addressing regulatory compliance is paramount. Increased employee turnover, higher operational costs, and internal conflicts among departments, although important, can be seen as indirect consequences of failing to maintain compliance. A strong audit program proactively identifies and mitigates compliance issues, which helps create a more robust operational environment leading to better employee retention, control of costs, and harmonious inter-departmental relationships.