What is the first step in an IT risk assessment for a risk-based audit?

The first step in an IT risk assessment for a risk-based audit is to understand the business, its operating model, and key processes. This foundational knowledge is essential as it allows auditors to align the audit objectives with the organization's strategic goals and operational context. By comprehending how the business operates, the auditors can identify where risks may arise and how they could potentially impact the achievement of these objectives.

Understanding the business environment is critical for determining the relevance of various IT systems and controls. It helps auditors prioritize which areas require more focus based on the potential impact on the business. Moreover, an in-depth understanding of key processes enables the identification of critical assets and dependencies, setting the stage for effective risk evaluation and management.

Identifying IT systems and controls, listing controls from the audit program, and reviewing results from a risk self-assessment all hinge on having a solid understanding of the organization's context. Without this initial comprehension, the subsequent steps may lack the necessary relevance and focus, potentially leading to ineffective risk assessments and audits.