Abstract:

This article focuses on risk-based auditing is a broad topic, one that can be applied to many areas. Additionally, it discusses about thecomponents of risk, which are evaluated separately: inherent risk, control risk and detection risk. This paper offers a simple risk-based audit methodology. By the undertaken study we define the audit risk concept, identify the typology and indubitably divide the involvement of audit and risk management into the equation of risks and some internal auditing’s role in risk management