Risk based internal audit: a modern tool at the service of risk management

10:18 | June, 13 2018

Mohammad Ali Bagherpour Velashani , M. Jahanbani

Abstract

Internal auditing plays an important role in the efficiency and effectiveness of the organizations internal control system. Internal auditing should provide management right information regarding the effectiveness of risk management and internal controls, including compliance with organizational rules and regulations. At present, there are different types of internal audits that mostly accept and execute procedures such as transaction testing, validation and reliability of accounting ledgers and financial reports, accuracy, reliability and timeliness of control reports, and test compliance with legal and regulatory requirements. However, none of them presents an opinion on the qualitative aspect of organizational management, especially risk management. Therefore, the need to redefine internal audit and identify new domains is felt as to ensure the adoption of modern risk management tools, the adequacy and effectiveness of these tools, as well as help organizational units to reduce risks. This change in the focus of internal auditing is possible by modifying the attitude to audit and turning it into risk-based auditing

   
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