Risk Assessment

This is Part2 of an article on developing quantitative indicators of risk to support the annual risk-based audit planning process. Part1 presented the concept that risk (Probability and Impact) can be measured quantitatively by looking at Complexity and Change (which increase the probability) and Materiality or Volume (which increases the impact).  It also encouraged you to look at more than financial risk.  Part 2 presents examples of indicators of risk…

This was my first attempt at identifying risk to support the development of the annual risk-based audit plan (RBAP).  I have been involved in the development of the RBAP – even responsible for it – over the years and always felt that it was more professional opinion than anything else.  Some people built a spreadsheet with weighting factors 1-5 and fooled themselves into believing that there is a logic and…

Having been a member of the IIA since 1990, I always looked forward to the Internal Auditor magazine.  However, it rarely included articles on computer-assisted audit tools and techniques (CAATTs).  I wrote the first of several articles on data analytics “Computer-Assisted Audit Tools and Techniques: The Power of CAATT is turning up the ‘can-do’ potential of some audit shops”.  It was published in February 1993 and, to my knowledge, was…