A Study on the Application of Risk-based Audit of Internal Audit in the Public Institutions

Risk-based audit is a new audit pattern which is developed on the basis of accounts oriented audit and system oriented audit.It's an effective way to strengthen internal controls and risk management,improve the quality of internal audit work and reduce audit risk.Although this new audit pattern is still in the initial exploratory phase in the public institutions,it Absolutely indicates the development direction of the internal audit in the public institutions.This paper analyzes the definition of risk-based audit,the necessity of the introduction of risk-based audit to the public institutions and the main problems.By associating the current status of the public institutions,this article analyzes the internal audit procedure based on risk-based audit,and gives advice to make it perfect.