Which of the following is a primary objective for a compliance manager during financial institution audits?

Identifying root causes of inconsistencies in compliance practices is a crucial objective for a compliance manager during financial institution audits. This process involves analyzing the reasons behind any deviations from established compliance requirements and helps in understanding underlying issues that may lead to regulatory violations. By addressing these root causes, the compliance manager can implement more effective controls and training programs to mitigate future risks, thereby enhancing the overall compliance framework of the institution.

Moreover, this approach fosters a culture of continuous improvement within the organization, where compliance practices are regularly assessed and refined based on audit findings. It allows for proactive measures to strengthen compliance efforts rather than merely reacting to past incidents.

In contrast, ensuring staff members follow all regulations without exception might be an important goal but is less focused than addressing root causes. Preparing financial reports for upper management is typically outside the purview of compliance management, as that task usually falls under financial management. Setting compliance goals based on previous regulatory actions can be beneficial; however, it does not directly align with the immediate objectives during an audit, which is fundamentally about identifying current issues and improving compliance practices.