Risk Based – Annual Internal Audit Plan (Practical Illustration)

Note: Please let me know if I can help you in any way, especially if you're looking for live online CIA classes or professional advice or audit and risk consulting by reaching at [email protected]. Risk Based - Internal Audit Planning Process Risk-based internal auditing is defined by the Institute of Internal Auditors (IIA) as a method that connects internal auditing to a company's overall risk management framework. A risk-based internal audit (RBIA) examines a company's reaction to the risks it faces in achieving its goals and objectives. I attempted to explain risk-based auditing in five simple steps, touching on concepts such as audit universe, risk maturity, risk likelihood and expectation, inherent risk, control risk, residual risk, and organizational goals and objectives. The old compliance method of auditing has been replaced with a more sophisticated risk-based and risk-driven planning and auditing perspective. RBIA enables auditors to focus their resources based on strategic objectives, assessment criteria, and risk probability, thereby increasing audit efficiency and effectiveness. If you find interesting please do share with others and subscribe to the channel for more similar topics.