Question

Discuss information risk and gives examples on how an audit can result in substantial saving in the entity?

Answer 1

Company before taking any project make the cost and benefit analysis and also SWOT analysis or we can say its costing and profitability and risk analysis to avoid any loss or mitigate risk in future. For making such analysis companies needs huge and variety of information.

But if the information on which basis the decision was made is wrong, inaccurate and incomplete then the company and its client have to bear a huge loss of money and time.

Such risk associated with information is called information risk.

Auditing can be very helpful in this regards.

Auditing provides the assurance through independent professional services that improves the quality of information.

Reviewing and verification and attestation  of financial statements and internal control helps in providing the correct and reliable data to the company.