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

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Definitions:

Breakdown Probabilities

The likelihood of a system or component failing within a certain period.

Autonomous Maintenance

Operators partner with maintenance personnel to observe, check, adjust, clean, and notify.

Empowered

Given the authority, power, or confidence to make decisions, take action, and be responsible for the outcomes.

Expert Systems

Artificial intelligence programs that use expert-level knowledge to solve problems in a specific domain, mimicking the decision-making ability of a human expert.