Audit Planning: A Risk-Based Approach

1

WHY RISK-BASED AUDIT PLANNING?

The chief audit executive should establish risk-based plans to determine the priorities of the internal audit activity, consistent with the organization's goals.

—IIA Standard 2010

INTRODUCTION

Internal auditing has grown tremendously over the years to reflect its new high-profile position in most large organizations. It has shifted from back-office checking teams to become an important corporate resource. The focus on professionalism and objectivity has driven the new-look auditor toward high-impact work that can really make a difference. Risk-Based Audit Planning is the second book in the Auditing New Horizons book series. The first book set out a framework for audit's role in ERM, while this second book describes how to put these aspirations into action.

The practical focus of this book has necessitated a greater use of case studies and checklists. Note that the same format of building purpose-made models for each chapter as exists in Auditing Risk Management is applied and this format will apply to all the books in the Auditing New Horizons series. Risk-Based Audit Planning draws on a number of important sources of information and guidance. First and foremost is the Institute of Internal Auditor's (IIA) professional practices framework that includes research, position papers, and noted textbooks as well as the standards, code of ethics, practice advisories, IIA publications, and pronouncements. This second book becomes more detailed as we consider ...