Business Risk vs Audit Risk

1109 WordsJun 21, 20125 Pages
------------------------------------------------ Business Risk vs. Audit Risk By Gabriel Agboola The following article first appeared online in the IT Compliance Institute Ask The Auditor column. Used with Permission. What’s the difference between business risk and audit risk? Business risk relates mainly to an organization’s goals and objectives. It is essentially the potential cost incurred if the business does not achieve its strategic plans. The assessment and management of business risk has evolved into formalized enterprise risk management (ERM) in many organizations. By contrast, audit risk relates mainly to the internal and external audit efforts to achieve its objectives; that is, provide effective, timely, and efficient…show more content…
------------------------------------------------- Audit Risk Now, that we've looked at the role of the auditor in assessing business risk, let's talk about audit risk. Audit risk has traditionally been defined as risk that an auditor will make wrong or misleading assessments. By following a
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