Risk-based auditing aligns internal audit work with the organization's risk profile, focusing efforts where potential impact and likelihood are greatest. Audit plans dynamically adjust as risks evolve, incorporating input from risk assessments, management concerns, regulatory changes, and emerging issues. This approach maximizes audit value by addressing high-priority areas while potentially reducing coverage of stable, low-risk processes. An internal audit function might skip annual reviews of mature, well-controlled procurement processes to conduct unscheduled audits of a new digital payment platform following a risk assessment revealing cybersecurity and compliance vulnerabilities, demonstrating responsive resource allocation aligned with current organizational risk priorities.