25
magazine
ALRAQABA
Zaman:
the Lack of Effective Audit Systems led to the International
Approach towards Risk- Based Audit
Mr. Maitham Jamal, the Internal Auditor at Kuwait Petroleum Corpora-
tion (KOC) stated that, Risk –based Audit is currently considered as one
important method of the ones followed in carrying out internal audit op-
erations. Whereas, risks faced by the corporation is being recognized,
analyzed, categorized, and sorted in a way enabling the audit team to
examine audit control tools that would minimize the percentage of these
risks. He added that the said method assisted in decreasing the time
period required to complete the audit process through the optimum use
of the working hours for the audit staff, under the circumstances encoun-
tered due the international difficulties that face the oil industries, which
oblige the audit bodies to increase their efficiency through the application
of risk-based audit.
Zaman explained that the previous historical examples have a consider-
able role in the adoption of risk-based audit. Whereas through the years,
huge companies have collapsed, international economy crises occurred
mainly due to the lack of effective audit systems, and the unexpected
occurrence of such risks. Therefore, governments and massive com-
panies called for the development of the audit operation to go in line
with these sudden changes occurring worldwide. This step shall get the
management prepared to encounter the risks and decrease their impact
on work.
Moreover, KOC faces different risks since the oil industry in its own way is
considered one of the highly hazardous industries. The most dangerous
risks are represented in facing the deadly accidents, environment pollu-
tion, risk of vast projects delay, oil market price fluctuations, production
risks, and other professional, management, financial, and production
risks. The corporation is preparing a comprehensive record to mitigate
and identify the consequent risks, and manage them through specialized
bodies and work teams
■
The agreement strengthen the bilateral rela-
tionship between the two parties in the re-
spective audit field; develop the professional
skills of both sides and coordinate efforts
concerning the regional and global meet-
ings. That, in addition to developing train-
ing activities, and the experts’ visits, as well
as to sharing technical information and re-
search results in accordance to the techni-
cal cooperation program agreed upon by the
two parties
■
The State Audit Bureau of Kuwait (SAB)
signed a cooperation agreement with the
Supreme Audit Office of Poland to strength-
en mutual cooperating, exchange experi-
ence in the audit field, and develop profes-
sional skills.
The agreement aims to develop and improve
the cooperation between SAB and the Pol-
ish Supreme Audit Office, which contributes
in supporting the distinctive relationship be-
tween Kuwait and the Republic of Poland.
SAB signs a cooperation agreement
with the Supreme Audit Office of Poland
