© D.L. Crumbley
Risk Assessment Benefits
A major step in a forensic audit is to conduct a risk assessment, which entails a comprehensive review and analysis of program operations in order to determine where risks exists and what those risks are.
Any operation developed during the risk assessment process provides the foundation or basis upon which management can determine the nature and type of corrective actions needed.
A risk assessment helps an auditor to target high-risk areas where the greatest vulnerabilities exist and develop recommendations to strength internal controls
Source: B.l. Derby, “Data Mining for Improper Payments,” Journal of Government Management, Winter 2003, Vol.52, No. 4, pp. 10-13.