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Explain the Basic Principles of Risk Based Auditing

question 6

Essay

Explain the basic principles of risk based auditing. Set out five examples each of
-Strategic risks
-Operational risks


Definitions:

Managerial Strategy

The set of actions, plans, and policies devised by management to achieve competitive advantage and meet organizational goals.

Differentiation

The process of distinguishing a product or service from others to make it more attractive to a particular target market.

Cost

The amount of money required to purchase something or the expense associated with producing a service or carrying out a project.

Business Strategies

Comprehensive plans crafted by organizations to achieve competitive advantage, meet customer needs, and ensure long-term profitability and growth.

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