A compass is made up of a steel needle which is a permanent magnet. Hence the tip of the arrow is the North seeking pole while the other end is the South seeking pole.
The compass needle will point in the direction of the magnetic field line.
View the video to see how a actual compass will behave under the influence of a magnet.
<p>Magnet _ Compass from evantoh on Vimeo.</p>
Evan's Space 