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risk management processes 
The areas auditors will concentrate on will depend on the 
scope
and 
priority
of the assignment and the 
risks identified
. Where the risk management framework is insufficient, auditors will have to rely on their 
own 
risk assessment 
and will focus on 
recommending an appropriate framework
. Where a framework 
for risk management and control is embedded in operations, auditors will aim to use 
management 
assessment of risks
and concentrate on 
auditing the risk management processes
. 
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PART C: ACCOUNTING AND REPORTING SYSTEMS, CONTROLS AND COMPLIANCE 
 
244
 
3.5 The features of internal audit 
From these definitions the two main features of internal audit emerge. 
(a) 
Independence
. Although an internal audit department is part of an organisation, it should be 
independent of the line management whose sphere of authority it may audit.
(b) 
Appraisal
. Internal audit is concerned with the appraisal of work done by other people in the 
organisation, and internal auditors should not carry out any of that work themselves. The 
appraisal of operations provides a service to management. 
3.6 Types of audit
Internal audit is a management control, as it is a tool used to ensure that other internal controls are 
working satisfactorily. An internal audit department may be asked by management to look into any 
aspect of the organisation.
Five different types of audit can be distinguished. (The first three types are considered further in the 
following paragraphs.) 

Operational 
audit 

Social 
audit 

Systems 
audit 

Management 
investigations 

Transactions 
audit