Can you provide an example of a time when you identified and mitigated a significant risk during an audit engagement?

Example of Identifying and Mitigating a Significant Risk during an Audit Engagement

During a recent audit engagement as an Internal Auditor, I encountered a situation where the company's financial records showed inconsistencies in the inventory management process. Upon further investigation, it was revealed that there was a lack of proper controls and documentation in place, posing a significant risk to the company's financial accuracy and compliance.

To mitigate this risk, I conducted a thorough examination of the inventory operations and implemented stricter inventory controls and procedures. This included implementing regular inventory counts, establishing segregation of duties, and enhancing documentation requirements for all inventory transactions.

As a result of these measures, we were able to identify and rectify the discrepancies in the inventory records, ensuring improved accuracy and reliability of the financial information. This experience not only demonstrated my ability to identify and mitigate risks effectively but also highlighted the importance of ensuring robust controls in place to safeguard the company's assets and financial integrity.