Temat: Risk based internal auditing (RBIA)

The auditor's dilemma

Perhaps one of the dilemmas auditors face is being able to give the stakeholders of any business a level of confidence that they have captured and assessed 'all' material risks that threaten the company.
Risk based internal auditing (RBIA) as a methodology that links internal auditing to an organisation's overall risk management framework. RBIA allows internal audit to provide assurance to the board that risk management processes are managing risks effectively, in relation to the risk appetite.

•The starting point of an audit is quite different (although the need for the auditor to obtain knowledge of the business is probably even greater under this approach).
•The auditor does not begin by trying to verify the correctness of the property plant and equipment or the receivables or even to understand the wages system, but rather begins by asking the question –
•“What risks does this business face?” ( Risk register )

Having identified the risks faced by the entity being audited the next question the auditor asks is:
•"How is the entity coping or dealing with these risks? "

The implementation and ongoing operation of RBIA has five stages :





The five activity centers flow in a natural waterfall manner, passing information from one activity to the next and in doing so, the resulting outcome will lift the quality of an audit and resolve the auditor’s dilemma we opened with at the beginning of this post.

https://www.linkedin.com/pulse/auditors-dilemma-vihari-k