Legal risk analysis is an important undertaking because there is constant tension between your limited resources and your mandate to responsibly manage the government records. Addressing problems and uncovering can be a burden, but the failure to do so may lead to lawsuits, fines and penalties, and loss of credibility and public confidence. A legal risk analysis involves identifying the most probable threats to an organization and analyzing the related vulnerabilities of the organization to these threats.
A risk assessment involves evaluating existing environmental and physical security and controls, and assessing their sufficiency relative to the potential threats of the organization. The process of legal risk analysis can be approached in several different ways. A good preliminary step is to familiarize yourself with past problems before moving on to the particular information system and records you are examining.
Query Form
Key Benefits of Audit
- Assurance on the reliability of the financial statements or financial information to the users.
- Safeguards the Financial Interest of persons not associated with the management of an entity.
- Moral check on the Employees from committing frauds.
- Preventive Action Required for Business continuity.
- Detection of wastages and losses that occur due to absence or inadequacy of Internal checks or controls.
- Audited statements of accounts are helpful for:
- Settling liability for taxes.
- Negotiating loans.
- Determining the purchase consideration for a business.
- Obtaining license for trading or Grants from Government.
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