24
magazine
ALRAQABA
Issue Report
and managing them.
Furthermore, He categorized the risks that might face auditors into two
types. First, internal risks that are related to a SAI’s routine work, e.g. stra-
tegic planning, audit processes and employment. The second types is the
external risks. The principle of risk-based audit applies to both types of
risks in terms of methodology and can be applied across all areas.
Al –Awadi:
IT Risks are the New Challenge for the Banking Sector
The Executive Director of the Central Bank of Kuwait Audit Sector Mr.
Waleed Al-Awadi stressed on the fact that risk-based audit is one of the
most important cases, which grasps the attention of the international in-
stitutions especially in the banking sector . This happened due to the risks
encountered that require serious evaluations and measures, alongside to the
development of the necessary controls.
Al-Awadi stated that the Central Bank of Kuwait is continuously confronting
risks relating to the banking sector, which are operation, reputation, liquidity,
exchange rates, and market. He added that, recently other risks emerged
which are related to technology and are considered as the new challenge for
the banking sector, and is grasping an international attention with an aim to
reach innovated methods for their evaluation and mitigation.
Al –Awadi added that the Central Bank of Kuwait participated in the 1st
Scientific Forum on Risk –Based Audit with a presentation on the significant
risks encountered by the bank, e.g. internal risks within the operation risk ar-
eas that could be controlled. In addition, risks related to the banking services
since the Central Bank is generally responsible for the safety of this said sec-
tor at the State level. As well as to its ability to continue providing the services
to support the national economy. The Central Bank Audit Sector main task
defines the evaluation methods utilized by the banks, and also supervises
the way in which banks deal with the aforementioned risks and their impacts.
Al
-Abdulkhader:
Risk -Based Audit Improves the Institution’s Audit
Environment
The Auditor at the Internal Audit Department of the Public Institution for
Social Security, Mrs. Sara Al-Abdulkhader stated that risk- based audit
helps in developing the audit quality, raising the sufficiency of the pro-
duced reports, and enables the SAIs to develop their audit environment
,especially when the risk- based audit plan is being adopted.
Al-Abdulkhader added that the international trends are adopting risk-
based audit through designing effective audit plans that add more value to
the institution, and help in the achievement of its goals.
She explained that the Public Institution for Social Security work nature
in dealing with retirement funds leads to the encounterment of several
political, financial, compliance, and strategic risks. The institution studies,
analysis, sets out remedial plans, and measures their impact in a general
manner. The Institution’s Risk Management Department designed sound
plans to mitigate all types of risks facing the institution.
Mrs. Sara clarified that SAIs set out the Internal Audit Plan for 2018, which
includes risk-based audit, and identifies the departments’ audit priorities
according to the standards related to risk-based audit.
