Conceptual analysis of the role of risk management in internal auditing

Internal Auditing is a very well-known standard currently in application mainly in private sector throughout the world. It is beginning to be accepted as a de-facto standard in public sector of some countries. Turkey has recently passed a law number 5018 which regulates the use of internal audit in Turkish public financial management and control system. Because internal auditing is a new term in Turkey, its active field, its benefit to public sector, internal auditor?s jurisdiction and it?s differences from the current auditing mechanisms is still questioned.In the law numbered 5018, Internal Auditing is defined as follows: To add value to public administration and improve the work economic worth of resources, effectiveness and efficiency is essential to evaluate and manage to be managed by and guidance to make independent, objective assurance and consulting activity is robust. The role of Internal Auditing in Risk Management can be explained by; Internal auditing activities are taken in management, control and risk management of economical subjects of organizations with a systematic, continuous and disciplined approach by using appropriate generally approved standards.It is stated that Internal Auditing should be done by Certified Internal Audits. Risk based auditing is a crucial point in new auditing concept. With this concept, internal audits now qualify the effectiveness of controls not after the auditing process but during the process. Also they provide suggestions in cases like lack of control. It is possible for us to define the term Risk as; any treat that can affect the expected outcome of a process. In the auditing process of management procedures, internal audits should evaluate possible risks and counter measure controls together. Hence, evaluation of risk management done by organizations became an important duty of Internal Auditing.Keywords: Internal Auditing, Central Harmonization Unit, International Internal Auditing Standards, Risk Management, Effectiveness, Sponsion