INTERNAL AUDIT AND ITS APPROACH TO THE RISK MITIGATION

This thesis is analyzing the modern role of the internal audit in corporate (mainly banking) structures. It describes the changes made in the social role of auditing during the years and emphasizes the internal audit ' s risk management function, rather than just control function. Attention is given to the methodology used, especially to the currently most widespread risk-based auditing approach. Also one of the most recent approaches to auditing-so called continuous auditing-is briefly described and the possibilities of its implementation into the risk-based framework are outlined.