Risk-Based Auditing

Risk-Based Auditing is an approach that focuses on identifying and assessing the risks that an organization faces to prioritize audit activities. Instead of reviewing all activities equally, auditors evaluate which areas are most vulnerable to issues like fraud or inefficiency. By concentrating their efforts on high-risk areas, auditors can provide more relevant insights and recommendations, enhancing the organization’s overall effectiveness and compliance. This method helps ensure that resources are used efficiently and that potential problems are addressed before they escalate.