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Risk-Based Internal Audit Overview

The document discusses Risk-Based Internal Audit (RBIA), which shifts the focus from traditional compliance to a risk management approach, prioritizing audits based on key risks that impact strategic goals. It outlines the objectives, key principles, benefits, challenges, and best practices for implementing RBIA effectively. Ultimately, RBIA enhances the internal audit's role as a strategic partner, improving governance, risk, and compliance within organizations.

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ecargkatiyar
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53 views11 pages

Risk-Based Internal Audit Overview

The document discusses Risk-Based Internal Audit (RBIA), which shifts the focus from traditional compliance to a risk management approach, prioritizing audits based on key risks that impact strategic goals. It outlines the objectives, key principles, benefits, challenges, and best practices for implementing RBIA effectively. Ultimately, RBIA enhances the internal audit's role as a strategic partner, improving governance, risk, and compliance within organizations.

Uploaded by

ecargkatiyar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd

Dated: 7 Apr 2025

Risk-Based
Internal Audit
(RBIA)
By: Grace Katiyar
BCOM(H)
3rd Year, 6th Semester
SBM, CSJMU Kanpur

Dr.Mayank Jindal
Presented To:
Assistant Professor
Introducti
on To
Internal
Audit
• Internal Audit: An independent, objective assurance and
consulting activity

• Helps organizations improve operations and manage risk

• Traditionally compliance-focused; now evolving toward risk-


based approaches
What is
RBIA?
• RBIA links internal
organization's overall
framework
auditing to an
risk management

• Focuses audit efforts on key risks that impact


strategic goals

• Prioritizes audits based on risk levels


Objectives of RBIA
• Provide assurance that risk
management processes are effective

• Improve alignment of audit with


organizational strategy

• Enhance resource allocation and audit


efficiency

• Support governance and internal


controls
Key Principles of
RBIA

• Risk-focused planning and execution

• Integration with enterprise risk management


(ERM)

• Dynamic and flexible audit processes

• Emphasis on continuous risk assessment


RBIA vs Traditional
Audit
Feature Traditional RBIA
Audit
Focus Compliance Risk &
Strategy
Planning Fixed schedule Risk-
prioritized
Flexibility Limited High
Value Reactive Proactive
RBIA
Framework
•
•
1. Risk Assessment
2. Audit Planning
• 3. Execution
• 4. Reporting
• 5. Follow-up
Benefits of
RBIA
• Better risk coverage and assurance
• Increased audit relevance and value
• More efficient use of resources
• Enhances stakeholder confidence
• Supports continuous improvement
Challenges of
RBIA
• Requires mature risk management
processes

• Needs continuous training and skill


development

• Difficulty in quantifying certain risks

• Resistance to change from traditional


models
Best Practices for Effective
RBIA
• Regularly update risk assessments

• Foster strong collaboration with risk owners

• Leverage data analytics for risk insights

• Keep audit plan flexible and responsive

• Promote a risk-aware culture


Conclusion
• RBIA enhances the role of internal audit as a strategic
partner
• Aligns audit activities with what matters most to the
organization
• Key to improving governance, risk, and compliance
(GRC)

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