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Internal audit

Types of internal audit work

7.1 Types of audit

 Compliance audit Compliance audits check the implementation of written
rules, regulations and procedures.

 Transactions A transactions audit involves the checking of a sample of
audit transactions against documentary evidence.

 Risk-based audit Plan audit tests so that more effort is directed towards the
most risky areas.

 Quality audit To establish whether quality objectives are being met.

 Post-completion An objective and independent appraisal of the measure of
audit success of a project.

 Value for money Whether proper arrangements have been made for
audit securing economy, efficiency and effectiveness (3Es) in
the use of resources

 Environmental Evaluation how well the company is safeguarding the
audit environment and meeting regulatory

 Social audit Looks at the company's contribution to society and the
community

 Management An objective and independent appraisal of the
(operational) effectiveness of managers and the corporate structure in
audit the achievement of the entities' objectives and policies

 Systems-based Audit of internal controls within an organisation
audit

Illustrations and further practice

Now try TYU 2 to 7 and 11 to 12 from Chapter 10

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