Enterprise Risk Management (ERM) is an activity undertaken bymany organizations. Jiffy Sportswear, Inc., is a fast growingprivately owned company that will soon issue its shares to thepublic and be subject to SEC jurisdiction. Its CEO wants toimplement a corporate wide ERM program and asks you, the CAE, tocounsel him on the following:
- Explain the purpose of ERM and how it may add value to theorganization.
- What is the role of internal auditing with respect to ERM?Moreover, what should internal auditing refrain from doing withrespect to ERM?
- Explain the concept of risk-based auditing and how it relatesto ERM.
