Risk-based Auditing: How does the role of the board differ from the role of management?

Periodically, independent directors meet outside presence of management (executive sessions), roles broadly include improving corporate credibility and governance standards functioning as a watchdog, and playing a vital role in risk management. For instance, a number of organizations host a guest auditor program whereby employees are assigned to your organization internal audit function for a short duration of time or to assist on one or more specific internal audit-related matters.

Internal Audit

Auditing and assurance play an essential role in the effective operation of your capital markets and the economy at large, providing confidence to current and prospective shareholders about the information disclosed by organizations, internal audit has also been frequently used as a sounding board by forward thinking management teams to discuss risk implications of strategies under development, and to consider appropriate containment measures, consequently, provide an oversight role on the systems of internal control, risk management, and governance.

Imperative Management

Implementing an internationally recognized best practice approach to your business is an important part of your relationship with your customers, organization risks by determining risk management and risk-based auditing understanding and managing it in a good way have become imperative, generally, as board directors and managers fulfill the specified duties and responsibilities according to the purpose of the role, the role supports its designated purpose.

Thorough Assurance

Logistics management is a supply chain management component that is used to meet customer demands through the planning, control and implementation of the effective movement and storage of related information, goods and services from origin to destination, the objective of the audit was to provide assurance that governance, internal controls and risk management practices related to physical security management are adequate and effective, correspondingly, project directors should have a thorough knowledge of project risks as well as of risk management tools and implementation.

Internal Based

Knowing the role of the board and who does what in relation to governance goes a long way towards maintaining a good relationship between the board and management, risk management is the foundation of the combined assurance process and organizations should establish risk-based criteria for dealing with control failures on a consistent and strategically aligned basis to ensure organizational objectives and goals are achieved. In conclusion, managerial accounting, also called management accounting or cost accounting, focuses on providing information to internal users and decision-makers.

Financial Areas

An audit program is the blueprint of the audit plan, which specifies, how the audit is to be performed, who is going to perform and what are the steps to be followed for conducting the same, typical task areas for small and midsized groups include budgeting and financial planning, financial reporting, and the creation and monitoring of internal controls and accountability policies. As a matter of fact, oversee the production of necessary financial reports, returns, accounts and audits.

Timely Responsibilities

Change management will have to be most effective when it is pulled in at the launch of the project, once the board of your organization has been equipped with appropriate expertise, the board must actually execute its responsibilities, besides, ensuring that adequate and timely risk identification is performed is the responsibility of the owner, as the owner is the first participant in the project.

Complex System

Risk-based Auditing helps your organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control and governance processes, its purpose is to ensure that all changes to a complex system are performed with the knowledge and consent of management.

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