Risk-Based Auditing Mohammadi Jamal1, Kalali Afshin2, Najafzadeh Ahmad2 1MA. in Accounting and Senior Auditor of Supreme Audit Court of Khorasan Razavi and University lecturer, Iran 2BA. in Accounting and Chief-Auditor of Supreme Audit Court of Khorasan Razavi, Iran Abstract Nowadays, auditors are always focusing on the risk areas, but the methods of assessing these risks by auditors are changing. Traditional auditing plans were mostly directed by the management and were based on suspicions, which in most cases were limited to wrong decisions. Since these auditing plans were not able to consider the continuous changes in risks, in most cases, they lead to improper allocation of resources. Similarly, if a list of the various risks in the industries is well prepared, their main weakness would be ignoring the unique characteristics and history of each organization's risk. An effective risk-based auditing plan overcomes all the mentioned limitations by observing organizational risks through the strategic targets charter and enables the auditor to conduct a more targeted and efficient auditing. Also, through correlation between organization's risk and business objectives of the organization, this auditing plan will lead to a more accurate, faster and clearer risk reduction programs. Therefore, the purpose of risk-based auditing is improving the efficiency and effectiveness of the audit. Top Keywords Auditing Risk, Inherent Risk, Control Risk, Detection Risk. Top |