Types of audit - part 2

In this lesson

1. 0:00 Value for money audits explained
2. 1:22 Management audits and organisational structure
3. 3:29 Social and environmental audits
4. 6:04 Internal audit versus external audit
5. 7:44 Types of internal audit in practice

About this lesson

(measuring non-financial impact), compliance and systems audits, and post-implementation reviews. Understanding these distinctions is essential for the Audit and Assurance paper, where exam questions test your ability to identify the right audit type for different organisational scenarios. The lesson breaks down each audit type with practical examples. A value for money audit applies to non-profit organisations or internal departments without profit motives—you'll learn how to assess whether resources are used economically and whether operations run efficiently and achieve their intended outcomes. Management audits examine both the organisational structure and the competence of people in key roles, though the tutor notes this requires careful handling to avoid seeming critical. Social and environmental audits measure an organisation's impact on its workforce, community, and environment by benchmarking policies against industry standards and tracking key performance indicators. You'll also see how internal audit differs fundamentally from external audit. While external auditors have a narrow, legally-defined remit to report on financial statements to shareholders, internal auditors work for management with a much broader scope—investigating controls, fraud, compliance, and organisational learning. The lesson closes with a practical drag-and-drop exercise that tests your ability to match audit types to real-world scenarios, reinforcing when to recommend each approach.

Duration: 9m