CA SS is conducting a training session for newly joined audit trainees. She explains the concept of audit risk and its three components. She mentions that while two components of audit risk are beyond the auditor's contr

The internal auditors should adopt a risk-based and systematic approach to minimize detection risk, which may include the following: Conducting comprehensive risk assessment of the concerned organization and allocating greater audit attention to high-risk activities and transactions. The Audit Plan should comprise of audit procedures that adequately address identified risks and allocation of audit activities is to be made to competent and experienced person. The Auditor should apply appropriate audit procedures and increase the extent of testing where the unusual, high-value, and high-risk transactions should be tested separately. Conduct thorough examination of audit trails and investigate unusual system activities and exceptions. Utilization of Computer-Assisted Audit Techniques (CAATs) and data analytics tools while analyzing entire populations of transactions rather than limited samples, where feasible.