We always hear the word â€œRiskâ€ in the audit atmosphere these days. Risk has become so important in audit parlance that we have specialized in â€œrisk auditâ€ training now. There are also auditors who have obtained special training on risk audit.
Risk audit is defined as the uncertainty of an event occurring that could have an impact on the achievement of the entityâ€™s objectives. Risk has been classified in many ways and there are different ways of classifying and grading risks. We should also bear in mind the fact that risk can be controlled only and not eliminated.
Risk audit is the examination and documentation of the effectiveness of risk responses in dealing with identified risk and their root causes, as well as the effectiveness of the risk management process. Conducting a risk audit is an essential component of developing an event management plan.