THE RISK APPROACH: AN ALTERNATIVE TO THE CLASSIC AUDIT APPROACH
Autor (i): Phd. Anca Daniela Șenchea Phd. Anda Necula Phd. Alice Mariana Preda (Simion) Phd. Andreea Savu
JEL: M42
Cuvinte cheie: auditors, risks, audit, company
Abstract:
This study will focus on addressing risk. The purpose of this article is to highlight the importance of the
risk approach in the pursuit of effectiveness and efficiency in audit work. To demonstrate this, we will first show
the limitations of the classical audit approach, then illustrate the importance of the risk-based approach, and
finally present the approach to auditing according to this approach. A risk-based approach also improves an
organization's decision-making process, regardless of its industry focus. Therefore, a risk-based approach
consists of identifying, assessing, and understanding risks, as well as the subsequent application of measures
proportionate to these risks to ensure their effective mitigation.
This study will focus on addressing risk. The purpose of this article is to highlight the importance of the
risk approach in the pursuit of effectiveness and efficiency in audit work. To demonstrate this, we will first show
the limitations of the classical audit approach, then illustrate the importance of the risk-based approach, and
finally present the approach to auditing according to this approach. A risk-based approach also improves an
organization's decision-making process, regardless of its industry focus. Therefore, a risk-based approach
consists of identifying, assessing, and understanding risks, as well as the subsequent application of measures
proportionate to these risks to ensure their effective mitigation.
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