Accounting: Public Sector Auditing

What is the opinion on the significance of assessing risk in the internal control process? Please raise thoughtful questions, analyze relevant issues, build on others' ideas, synthesize across readings and discussions, expand the class' perspective, and appropriately challenge assumptions and perspectives. (See below to get an idea.)

As far as I'm concerned, assessing risk in the internal control process is significant because it can limit or increase the amount of time devoted to a particular audit function and help make better use of available resources.As described in the text, "(r)isk assessment goes hand-in-hand with internal control because it influences the nature and extent of the controls and strategies adopted to manage the risks."Overall, risk assessment will help organizations put controls in place to counter threats and help to effectively pursue their objectives.Since assessing risk can help focus audit resources to where they can be used more effectively, the internal control process will be in a much better position to assure an organization's objectives in operational efficiency, reliable financial reporting, and compliance with laws, regulations and policies.