What type of compliance examination is typically broad and explores themes across firms?

• A. Scope examination
• B. Forewarning examination
• C. Sweep examination
• D. Intensive examination

Answer: (C)

A sweep examination is a compliance assessment that is comprehensive and looks at broader themes across multiple firms within the industry. The primary goal of a sweep examination is to identify potential widespread issues or trends that may pose risks to investors or the market as a whole. This type of examination typically involves collecting data and conducting reviews on a variety of firms to gain insights into common practices and standards.

By conducting a sweep examination, regulatory authorities can effectively gauge the compliance landscape and address any systemic issues that may arise. This proactive approach allows for timely interventions and can help ensure that the entire industry adheres to regulatory standards.

In contrast, other forms of examinations, such as intensive examinations, focus more narrowly on specific firms or particular activities. They delve deeper into the operations of a single firm rather than taking a broader industry-wide perspective. Scope examinations and forewarning examinations also typically concentrate on specific compliance areas or potential risks, which sets them apart from the overarching nature of sweep examinations.