Risk based internal audit: An implementation at energy sector

Nowadays, internal audit tries to support risk management processes by identifying and monitoring the business risks as well as examining whether the internal control mechanisms established within the enterprise are carried out effectively and efficiently. In other words, as well as the transaction and error-oriented approach in the audit activities internal auditors conducted, they began to undertake the function of determining whether the processes were managed effectively. Business activities are always intertwined with risks. Almost all of the strategic, financial and operational decisions may contain uncertainties. Some of these uncertainties positively affect business activities by chance, while some of these uncertainties that are considered as risk, create negative results in business activities. The evaluation of the strategic, financial and operational decisions and their impact on the company can only be achieved through a risk-focused internal audit approach. In this study, internal audit, the concepts and theories related with internal audit were explained, then the risk-oriented internal audit approach, the stages of implementation of the approach and the determination of risks and the process of risk evaluation were clarified in detail. In order to have information about the risks faced publicly traded and non-publicly traded enterprises operated at Turkey's energy sector and energy sector employee's view regarding risk based internal audit practices, a questionnaire was implemented. As a result, responses given to questionnaire were evaluated. In addition, by using risk based internal audit methods, tools and techniques, a risk-based internal audit implementation was carried out in the natural gas distribution enterprise of ABC Energy Incorporation. As a result of the implementation, a risk map and an internal audit work plan for processes of the natural gas distribution enterprise was prepared. Keywords: Risk Based Internal Audit, Energy Sector, Internal Audit, Branch of Natural Gas Distribution, Risk Based Internal Audit Implementation