Question

Difference between risk based audit and traditional audit

Answer 1

Auditing Internal Audit

What is the difference between traditional audit and risk based audit?



Mohammed Omer Alawad
Senior Internal Auditor - Confidential Comapny

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by SAHL HIJAZI CONTRACTS & PURCHASING SENIOR SUPERVISOR - 4 years ago

The difference(s); Traditional auditing is associated with conducting tests to issue an opinion on the truth and fairness of the financial statements of the company being audited. 
These tests include tests on the internal controls that the company uses to produce figures in the financial statements, tests on the amount balances of the accounts, and tests on the overall posting system of its accounts. 
On to information system (IS) auditing. 
Many people mistakenly assume that IS=IT, which it's definitely not. 
It's a common misconception that anything with the phrase INFORMATION SYSTEM is equivalent to INFORMATION TECHNOLOGY. 
In brief, information system is the system of how the information flows within a company, and it may be made up of sub-systems such as the purchase system, the sales system, the capital expenditure system, etc.