How frequently should a risk assessment for internal audit be performed?

The frequency of conducting a risk assessment for internal audit is best determined by an annual schedule. This timing allows organizations to comprehensively evaluate and adapt to changes in their risk environment over the course of a full year, encompassing shifts in business operations, regulatory requirements, and market conditions. An annual assessment ensures that the internal audit function remains aligned with the organization’s strategic objectives and risk management frameworks.

Performing the assessment annually also facilitates a more thorough analysis, as auditors can review the outcomes and effectiveness of prior audits, assess emerging risks, and reallocate resources as necessary based on the most current data. In contrast, more frequent assessments, such as quarterly or monthly, might lead to redundancy or insufficient depth in analysis, while biannual assessments may not adequately capture the dynamic nature of the risk landscape, especially in rapidly changing environments.