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Governance, Risk, Audit & Privacy · Foundational

Risk-Based Audit Approach

Audit planning approach that focuses resources on areas of highest risk.

Definition

The auditor assesses inherent risk, control risk, and business significance to determine where to audit and how much testing to perform. It improves efficiency and relevance compared with cyclical or comprehensive approaches. It begins with understanding the business and its risks.

Example

An auditor allocates more time to cloud IAM than to the low-risk intranet because of breach exposure.

Exam tip

The first step in audit planning is usually understanding the business and its risks.

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