This checklist is designed to guide auditors in conducting a thorough risk assessment prior to beginning an audit. It ensures that all potential risks are identified and evaluated to enhance the effectiveness of the audit process.
List out all departments or processes that will be audited and assess their inherent risks based on past audits and operational changes.
Determine the potential impact of identified risks on the audit objectives and the organization as a whole.
Evaluate how likely each identified risk is to occur based on historical data and current controls in place.
Rank the identified risks based on their impact and likelihood to focus on high-risk areas during the audit.
Examine the effectiveness of existing controls in place to mitigate the identified risks and determine if they are adequate.
Compile all findings and assessments into a risk assessment report that will be referenced during the audit.
Review the risk assessment findings with the audit team to ensure everyone is aligned on the risk factors and audit focus areas.