Internal audit

In this lesson

1. 0:00 Internal audit and organisational controls
2. 0:38 Defining internal audit independence and role
3. 1:53 Key activities internal audit performs
4. 3:03 Types of audits internal audit conducts
5. 3:48 Why organisations need internal audit
6. 4:24 Factors determining internal audit necessity
7. 6:12 Internal audit at ABC company scenario
8. 8:13 Assessing internal audit quality standards
9. 10:19 Internal versus external audit comparison

About this lesson

You'll discover the key activities internal auditors perform—from risk assessment and control evaluation to compliance reviews and process improvement recommendations—and understand when an internal audit function is necessary for your organisation. The lesson explores the different types of audits internal audit teams can conduct, including financial, operational, sustainability, and IT audits, depending on their expertise. You'll see how to assess internal audit quality through independence, competence, scope, and stakeholder engagement, using a practical manufacturing company scenario to understand how internal audit addresses real business risks like supply chain vulnerabilities, quality control, and data security. You'll also learn how internal audit differs from external audit. While external auditors provide an independent opinion on financial statements for shareholders, internal auditors work for management and the board to ensure risks are managed, controls are effective, and the organisation complies with regulations. Understanding this distinction is crucial for the AA module and helps you see how both functions work together to strengthen corporate governance.

Duration: 13m