Risk assessment is one of the major steps in the audit‐planning process. The increase in the number of incidents of … auditors′ negligence has focused attention on this important step. Risk is defined in a statement by the Internal Auditing … risk can be faulty decisions as a result of utilizing inaccurate or incomplete information; inappropriate accounting …

, financial statements analysis, ratios and trends analysis, non-financial data analysis and risk identification. External and … includes organization policies and procedures, control environment and corporate governance. Risk identification consist of … various audit risk areas of BEXTEX, like – inherent risk, control risk and detection risk …

We examine whether internal auditing provides value to organizations by reducing risk. We compare the changes in risks … importance of an internal audit while holding constant changes in risk due to the organization and time period. Based on ratings … from the heads of audited and non-audited units, we find that managers of audited units perceive a greater decline in risk …