What is the Audit Risk Rating(ARR)?

To define the criteria for an organization so that risk rating can be found and ranking for risk rating can be established, Audit Risk Rating is used. As per management feedback, each audible entity is rated in Audit Risk Rating (ARR). ARR can be used to perform the tasks given below:

• Set of audible entities and risk factor can be found out
• Risk score for a risk factor in each auditable entity can be defined and evaluated.
• The auditable entity can be rated as per risk score.
• By comparing risk scores for different auditable entities users can also generate an Audit plan from Audit Risk Rating (ARR).