RISK ASSESSMENT

At CHAN, we take a risk-based approach to internal audit to ensure your audit resources are appropriately focused on the business units with the greatest risk.

This approach begins with the development of an annual plan that enables you to assess your current situation and prioritize your needs. Using a risk-based, collaborative approach, we seek management input on a wide range of issues, including your strategic initiatives, anticipated changes, financial operations, information technology and corporate compliance matters. We also share our own research on selected high-risk subject areas that we’ve helped other clients address.

With this information in hand, we rate each potential area of audit on six risk factors, each of which is weighted according to its relative importance. From there, we calculate a quantitative score for each potential audit area, helping to ensure our annual audit plan is focused on the highest risk audit areas.

The first draft of an audit plan, however, is rarely the final draft. Draft plans are reviewed both by your management and ours before going to your Audit Committee for approval. Because new issues arise year round, we also reassess each audit plan on a quarterly basis, adjusting priorities as necessary to address changing needs.