What process supports the identification of high-risk areas that need thorough reviews?

The identification of high-risk areas that require thorough reviews is primarily supported by risk assessments. This process involves systematically evaluating the organization's exposure to risks, which can include operational, financial, compliance, and strategic risks. By conducting a risk assessment, organizations are able to prioritize areas based on the level of risk they present, enabling targeted and efficient resource allocation towards those that require more in-depth review.

Risk assessments often involve gathering information from various sources, analyzing that information for potential vulnerabilities, and considering the likelihood and impact of various risks. This is crucial in establishing a proactive approach to risk management, as it helps organizations anticipate and address risks before they can lead to significant issues.

While control self-assessment can assist in evaluating internal controls and processes, and internal auditing focuses on evaluating the effectiveness of governance, risk management, and internal controls, the foundational step in identifying high-risk areas is effectively conducted through risk assessments. Continuous auditing, while valuable for ongoing compliance and control effectiveness, does not inherently focus on the initial identification of high-risk areas. Therefore, the process that supports the identification of high-risk areas is clearly aligned with the principles of risk assessments.