Audit Risk
What is Audit Risk?
The risk that an auditor expresses an inappropriate opinion when the subject matter is materially misstated. Audit risk comprises inherent risk, control risk, and detection risk.
Terms that appear alongside audit risk
Each of these is named in at least one of the same controls as audit risk. The number is how many controls name both.
- audit 8 shared controls
- compliance 6 shared controls
- risk assessment 4 shared controls
- internal audit 3 shared controls
- policy 2 shared controls
- cybersecurity 2 shared controls
- due diligence 2 shared controls
- encryption 2 shared controls
Frameworks that govern audit risk
What the standards actually require on audit risk
Requirements naming audit risk across 6 standards, quoted from the control text.
Section 8 of KOSA mandates annual independent audits of covered platforms by qualified third-party auditors. (1) Section 8(a) Annual Independent Audit: (a) Covered platform must commission annual third-party audit;
KOSA-Independent-Audit-Section8-Annual-Third-Party-FTC-Approved-Auditor-Compliance-Verification-Public-Summary · KOSA Independent Audit + Section 8 + Annual + Third-Party + FTC-Approved Auditor + Compliance Verification + Public Summary + Multi-Layer Audit + Risk Assessment Verification + Safeguard Effectiveness + Algorithmic System Audit →Internal audit, which in addition to Appendix A should ensure the framework complies with the Guidelines and suits the bank's size, complexity and risk profile, should establish and adhere to an audit plan, periodically reviewed and updated, that reflects the...
occ-heightened-standards-12-cfr-part-30-appendix-d::II.C.3.(b) · II.C.3.(b) Internal audit: Risk-based audit plan →Unless it can justify otherwise, the entity must at least treat providers of these services as material: for an ADI, mortgage brokerage, credit assessment, and funding and liquidity management;
apra-cps-230-operational-risk-management::49 · Para 49 Minimum material service provider classifications unless justified →The CISO regularly reports directly to their organisation's audit, risk and compliance committee (or equivalent) on cyber security matters.
ISM-1918 · CISO reporting to audit and risk committee →The bank has robust corporate governance policies and processes proportionate to its risk profile and systemic importance, covering culture and values, strategic direction and oversight, group and organisational structure, the control environment, suitability...
basel-core-principles-for-effective-banking-supervision-2024::P14 · Principle 14: corporate governance →A review after implementation confirms the outcome and results, draws out lessons learned and produces an action plan, comparing how the new or changed service actually performs and what it actually delivers with what was expected: procedures make sure that th...
cobit-2019::BAI07.08 · BAI07.08 Perform a post-implementation review →Questions people ask about audit risk
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