The GREATEST benefit of risk-based auditing is that it:
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A. B. C. D.D.
Risk-based auditing is an approach to audit planning and execution that focuses on assessing and addressing risks to the organization. The goal of risk-based auditing is to ensure that audit resources are deployed in a way that maximizes their effectiveness in identifying and addressing the most significant risks facing the organization.
The greatest benefit of risk-based auditing is that it enables alignment of resources to significant risk areas. By focusing on the most significant risks facing the organization, risk-based auditing allows auditors to target their efforts where they are most needed. This ensures that audit resources are deployed in a way that maximizes their effectiveness in identifying and addressing risks.
By identifying and addressing significant risks, risk-based auditing can help organizations to prevent or mitigate potential losses or damages. This can help to protect the organization's reputation, assets, and overall business performance.
In contrast, traditional audit approaches that are not risk-based may not be as effective in identifying and addressing significant risks. They may instead focus on compliance with regulatory requirements or identifying low-risk areas, which may not be as critical to the organization's success.
Therefore, the answer to the question is B: the greatest benefit of risk-based auditing is that it enables alignment of resources to significant risk areas.