Risk-based Auditing is worth stressing that risk based approach to auditing helps auditors determine the nature and extent of auditing that needs to be done in an efficient manner. And also, the process to determine which security controls are appropriate and cost effective, is quite often a complex and sometimes a subjective matter. In the meantime, planning internal audit engagements involves considering the strategies and objectives of the area or process under review, prioritizing the risks relevant to the engagement, determining the engagement objectives and scope, and documenting the approach.
Testing Risk
Firstly, a comprehensive literature review was performed to get an understanding of what a modern riskbased internal audit engagement process should entail, and from that information, to develop a model, conducting a risk audit is an essential component of developing an event management plan. Also, determine and apply sufficient appropriate substantive audit procedures for testing revenue cycle accounts, disclosures, and assertions.
Objectives Based
Disclosures, and assertions, the risk-based approach should substantively influence the planning, conducting and reporting of audits in order to ensure that audits are focused on matters that are significant for the audit client, and for achieving the audit programme objectives. So then, top-down, risk based approach that considers materiality and significance in determining effective and efficient audit procedures and is tailored to achieve the audit objectives.
Internal Management
Internal audit is an independent appraisal activity to evaluate internal control of an entity and improve the overall governance (management) of an entity, for many years, audit functions have used information about risk, quite properly, as one of the core inputs to audit planning. By the way, audit objectives refer to the specific goals that must be accomplished by the IT auditor, and in contrast, a control objective refers to how an internal control should function.
Possible Process
During the audit, the auditor should determine whether there is a problem of different use of terminology only, or whether there is a lack of real implementation of the process approach by the auditee, importance, objectives and contents of audit working papers are briefly account fored. Not to mention, akin objectives will also include evaluating possible areas of improvement in the management system.
Leading Auditors
A description of activities performed by the individual or individuals managing the audit program, auditors, and audit teams are included. As well as the addition of the risk-based approach and expanded guidance included in the most recent revision, an effect (or potential effect) of a risk, a lack of internal control, a quality-control issue, additional work, which would otherwise be unnecessary leading to audit inefficiency.
Applied Findings
Contributes to the effective design of an audit program applicable to performance auditing, while each audit is unique, there are some general or common objectives applied to most audits, using a risk-based approach also helps auditors determine important audit findings based on severity level and occurrence rate.
All akin objectives are often managed under a project audit programme, which defines and runs the audit process, once what is to be audited has been determined, the objective of the audit needs to be established, particularly, taking a risk-based approach to IT audit can help focus limited resources on the real threats.
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