Librarianship and Organizational Intelligence Systems

Question: Discuss about the Librarianship and Organizational Intelligence Systems. Answer: Introduction This part of the assignment aims to present the discussion and analysis of several approaches used for auditing that assists in reducing the auditing risk to an acceptable level. The report covers the explanation on risk- based approach that is used at the stage of audit plan including the explanation of audit risk in relation to the audit plan. The report also presents explanation on the process that helps the auditor in eliminating the audit risk using risk- based approach. Risk- based approach Risk based approach to auditing is a procedure internal to the organization that considers inherent risk engaged in the financial statements or business activities to provide assurance on the management of risk within the acceptable level. The department of independent audit conducts risk based audit approach that directs the audit resources towards the weak areas of the business or financial statements that contain errors and misstatements so that the risk can be mitigated (Thompson et al., 2013). Audit Plan using a risk based approach As the independent audit department conducts the risk- based approach in audit, role of auditor has been significant for governance and required to enhance the understanding for appropriate audit plan. It is essential to plan audit procedures appropriately for risk- based approach so that it provides better governance, strong management to eliminate business risk and reliable controls (Li et al., 2015). Accordingly, audit plan using the risk- based approach involves assessment of risk management along with the control of internal processes as well as it displays the areas that contains higher risk. In this approach, auditor external to the organization, is required to consider two steps while planning the audit process i.e. process of risk assessment and execution of audit plan based on risk. Audit plan involves identification of key risks and defining the core audit areas in the financial statements that may contain material misstatements. Audit plan also involves procedure to monit or the internal control along with the plan to place communication with the management of the organization (Bhattacharjee, Maletta Moreno, 2015). Audit risk in relation to planning Audit risk refers to the risk due to which the auditor provides inappropriate audit opinion on the verification of financial statements that involves inherent risk, control risk and detection risk. At the stage of audit plan, it is essential to consider the components of audit risk so that the inherent risk can be minimized with respect to identify the core areas of financial statements may involve material misstatements. It is also essential to plan the audit procedure in terms of nature and size of business organization so that the detection risk and control risk can be eliminated to provide appropriate audit opinion (Carvalho Esteban-Navarro, 2016). Accordingly, risk based approach reduces audit risk by identifying the internal controls of the organization using the top- down approach. Since it involves the approach to determine the nature of audit tests relevant to the organizational business, the risk-based approach would reduce the audit control risk (Li et al., 2015). Conclusion Considering the above discussion, it can be concluded that auditing procedures should involve certain approaches to reduce the probable risk that helps in providing appropriate audit opinion. It is essential for the independent auditor to plan audit process that helps in identifying the areas involve material misstatements and weak internal control system that helps in reducing audit risk. Reference List Bhattacharjee, S., Maletta, M. J., Moreno, K. K. (2015). The Role of Account Subjectivity and Risk of Material Misstatement on Auditors' Internal Audit Reliance Judgments.Accounting Horizons,30(2), 225-238. Carvalho, A. V., Esteban-Navarro, M. (2016). Intelligence audit: Planning and assessment of organizational intelligence systems.Journal of Librarianship and Information Science,48(1), 47-59. Li, C., Raman, K. K., Sun, L., Wu, D. (2015). The SOX 404 internal control audit: Key regulatory events.Research in Accounting Regulation,27(2), 160-164. Thompson, M. P., Calkin, D. E., Finney, M. A., Gebert, K. M., Hand, M. S. (2013). A risk-based approach to wildland fire budgetary planning.Fore