Journal of Accounting and Management Information Systems (JAMIS)


Risk analysis in public institutions’ internal audit

13-14/2005 ,   p204..209

Author(s):  
Alberta CHITU


Keywords:   audit, essential risk; risk of control, risk of sampling

Abstract:  
The analyze of risk in audit is essential in accomplishing a mission of audit. The audit risk is …in professional ways of internal audit is defining the risk of being the “possibility of producing an event that could have an impact on accomplishing the targets depending of consequences and probability”.
The risks of audit can be of three types: essential risk; risk of control, risk of sampling.
The determination of the risk level in a mission of audit is very important because with this occasion it could be eliminated the further risk and the auditate entity could accomplish the proposed objectives. In activity of audit, the identification of real risks is madden starting from analyses and examinations effectuated before the period in which the mission is made. For identification of the risk it must be regarded the factor that could generate perturbations in the activity of an institution or a sector.
The risk analyzes it assumes the making of a few steps:
1.   The institution’s or structure’s activities analyze.
2.   The identification and evaluation with an impact on institution’s activity, that could have an influence on economical-financial operations.
3.   Controlling the existence of internal controls, internal control procedures and the evaluation of them.
4.   The evaluation and measuring of wicked points and the assortment of them on risk classes.
For effectuating the risk analyzes is necessary to do the next steps:
-       The identification of risk which could be the analyzes and examinations effectuated before the audit mission;
-       The measuring of risk which is made depending of his apparition probability and the gravity of the consecutions it could have;
-       The applying of models and techniques of audit risk determination.


Download:  

Back