Audit Risk Management (Driving Audit Value, Vol. II) - The Best Practice Strategy Guide for Minimising the Audit Risks and Achieving the Internal Audit Strategies and Objectives

Companies lose over $100 billion a year due to corporate scandals. Where were the internal auditors? Think about the VW diesel emissions scandal, the Yahoo hacking scandal, the BP oil spill scandal or the Petrobras corruption scandal. When the 1st and 2nd Lines of Defence failed to prevent these scandals, could the 3rd Line of Defence have prevented these? The answer can be yes, if those Internal Audit Functions would have managed their audit risks. The Beumer Audit Risk Management Model© shows the strategic audit risk management framework for the audit risk identification, measurement, mitigation. The model connects 60 audit risks, in 6 audit risk categories, to 30 audit objectives. Value risks, focus risks, execution risks, performance risks, reporting risks and compliance risks may keep the CAE from reaching the audit objectives. Depending on the audit risk appetite and prevention, the CAE can apply up to 66 audit risk mitigation measures for reducing the audit risks to an acceptable level.