Risk Based Auditing - Establishing a Methodology (Completed)

The Institute of Internal Auditors defines risk based internal auditing (RBIA) as a methodology that links internal auditing to an organization'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. RBIA is at the cutting edge of internal audit practice. It is an area that is evolving rapidly and where there is still little consensus about the best way to implement it. Executing on true risk based internal auditing requires more than an annual risk assessment for the internal audit plan. It requires a pre-established methodology that includes defining the organization's risk appetite and risk tolerance utilizing measurements that include aspects of financial, compliance and operational metrics. In addition, internal audit must be ready to put aside their typical checklists and standard work programs. True risk based internal auditing goes far beyond setting the annual audit plan. It incorporates cascading the process through to each individual audit as well as the audit reporting process.

Topics Covered

• This course focuses on the establishment of a framework or methodology for risk based auditing and examining how to utilize risk based questions within the process steps.

Learning Objectives

• Identify some of the various challenges internal audit may face when attempting to execute upon risk based auditing
• Recognize alternatives to identifying risk appetite and risk tolerance to utilize within risk based auditing
• Understand the development and usage of a variety of risk management characteristics when identifying risk tolerance
• Explore sample scoring techniques to apply to risk based auditing
• Learn how to conclude your assessment for risk based auditing

Level
Basic

Instructional Method
Group: Internet-based

NASBA Field of Study
Accounting (1 hour), Auditing (1 hour)

Program Prerequisites
None

Advance Preparation
None