Risk Assessment

Risk assessment helps the Office direct limited audit resources toward areas where weakness, error, non-compliance or misuse could have significant consequences. It is an essential part of annual planning and individual engagement design.

Factors may include financial significance, previous findings, internal-control weaknesses, operational complexity, changes in systems or leadership and the nature of public resources under management. Risk assessment is updated when new information becomes available.

The assessment does not assume that a weakness has occurred. It provides a documented basis for deciding what to examine, how much evidence is required and where specialist attention may be necessary.