Introduction

This introduction presents an overview of the key concepts discussed in the subsequent chapters of this book. The book explains the concepts and practice behind this best practice approach, and demonstrates that risk-based audit is much more a mindset than a process. Risk-based audit is probably the most exciting and significant development in the Internal Audit profession's history. It has the potential to catapult reputation of and the value added by this profession into the stratosphere. If it sounds a little far-fetched for a group of 'checkers' and 'nit-pickers' to reach these dizzy heights, the book provides the evidence. It explains how risk-based internal auditing can directly enhance an organisation's profitability, image and social responsibility and help it avoid nasty surprises. It is increasingly recognised that audit functions that are able to focus their efforts towards the significant risk in their organisations are able to concentrate their limited resources on the issues that drive business goals and aspirations.