What should auditors ensure regarding the risk rating of auditable entities?

Ensuring that the risk rating of auditable entities is consistent with the Enterprise Wide Risk Assessment (EWRA) is crucial because the EWRA serves as a comprehensive framework that identifies and prioritizes risks across an organization. By aligning the risk ratings with the EWRA, auditors can ensure that they are considering the broader context of risks that the organization has identified, which enhances the accuracy and relevance of the risk assessments.

This consistency facilitates a unified approach to risk management and auditing, allowing for better communication and understanding between departments. It ensures that auditors are not operating in a silo but are taking into account the organization's overall risk profile and priorities. This integrated perspective helps to ensure that audit focuses on the most significant risks that could impact the organization, thereby optimizing resource allocation and enhancing the effectiveness of the audit process. In this way, the alignment with the EWRA embodies a best practice in risk management within auditing processes.