A Conceptual Model for Implementing Risk-Based Auditing in Strategic Financial Management

Risk-based auditing has become an essential governance practice for strengthening organisational accountability, enhancing financial decision-making, and ensuring alignment between strategic objectives and risk management processes. While the concept has been widely applied within internal auditing and external assurance contexts, its integration into strategic financial management remains insufficiently explored, particularly in environments characterised by heightened uncertainty, regulatory change, and complex organisational structures. This study develops a conceptual model for implementing risk-based auditing within strategic financial management, drawing exclusively on literature published prior to 2021. The model integrates governance theory, enterprise risk management frameworks, audit methodologies, behavioural dimensions, and financial strategy principles. The Introduction and Literature Review synthesise key developments in risk-based auditing, strategic risk analysis, audit planning, internal control systems, and financial governance. Results highlight the need for a structured model that aligns risk assessment, audit prioritisation, strategic goal-setting, and organisational capacity. The proposed conceptual model establishes a platform for integrating risk-sensitive audit approaches into strategic financial management processes and lays a foundation for future empirical validation.