Risk-based internal audit

Okay, kiddo! Have you ever played a game where you have to be very careful not to make any mistakes? Maybe you are trying to stack blocks just right or walk across a balance beam without falling off.

Well, grown-ups have to do something like this too, but instead of blocks or balance beams, they have to be careful when they are working with money and important information about their companies. And they use something called "risk-based internal audit" to help them be careful and not make mistakes.

Here's how it works. Before the people who work at a company start doing their jobs, they think about all the things that could go wrong. For example, maybe someone could accidentally put the wrong number in a computer and all the money would get mixed up. Or maybe someone could forget to lock a door and a bad guy could come in and steal important information.

After they think about all the things that could go wrong, the grown-ups at the company decide which things would be the most important to fix first. They call these the "high-risk" things. Then they create a plan to check on these things and make sure everything is going okay. This plan is called the "risk-based internal audit."

It's kind of like if you were playing a game of blocks and you knew that some blocks were more wobbly than others. You would be extra careful with those blocks, right? That's what "risk-based" means. It's being extra careful with the things that could cause the most problems.

So, just like you have to be careful when you play your game, grown-ups have to be careful when they are working with important things at companies. They use "risk-based internal audit" to make sure everything goes okay and they don't make any big mistakes.