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Risk based audit carried out by external / statutory auditors and covers their opinion on the financial statements being audited, whereas an internal audit is a part of internal controls of an organization in order to minimize all kind of risks. Risk based audit submit a report that show the probability based on financial statement and some market appendix. On the other hand internal audit report on miss management of every department including financial statement.
Major difference is the fact that Risk based audit is based on intensity of risk; related to assignment / client.
Thus depth of audit procedures performed in such audit shall increase with intensity of risk. So auditor's scope is not limited to predefined procedures, as in internal audit.
Internal auditor is bound by limitations of his predefined job responsibilities.
Generally bankers will do risk based audit and internal audit for every firm.
Risk based audit carried out by external / statutory auditors and covers their opinion on the financial statements being audited, whereas an internal audit is a part of internal controls of an organization in order to minimize all kind of risks risks.
That is a very good question for a young professional like you to have asked. To answer you correctly, let me make an analogy: The sun is a star in the milky way, a very important star in our galaxy but by no means the only one. The same thing applies to Risk Based Auditing in regard to Internal Audit.
Good luck, keep being curious :)
