What should be documented along with the overall assigned risk rating for an auditable entity?

Documenting a summary of supporting evidence along with the overall assigned risk rating for an auditable entity is crucial for several reasons. This summary provides the necessary context and justification for the risk rating assigned, ensuring transparency and accountability in the audit process. It allows stakeholders to understand the basis on which the risk level was determined, offering insights into the factors considered during the risk assessment.

Supporting evidence can include data, findings from interviews, and observations made during the audit, which collectively substantiate the assessment of risk. This practice not only enhances the credibility of the audit findings but also aids in future audits by providing a record that can be referred back to.

While internal policy changes, team member evaluations, and client feedback can be relevant to an audit, they do not serve the same purpose in explaining or supporting the risk rating as comprehensively as a summary of supporting evidence does. Internal policies may impact risk assessment but do not directly document the rationale behind the assigned rating. Similarly, evaluations of team members and client feedback, while valuable, focus on different aspects of the audit process.