Auditing standards that guide the auditing profession change and develop in line with the changes in the business world. In addition, various institutions conduct research and studies in this field. In 2020, the IAASB initiated a project to amend ISA 240, The Responsibilities Relating to Fraud in an Audit of Financial Statements. Within this project's scope, the reasons for the expectation gap regarding Fraud and going concerns and the possible solutions are investigated. In this study, the responses to the discussion paper published by the IAASB were examined. According to the results, the most important reasons for the expectation gap are that the public and the members of the financial reporting ecosystem, in general, do not have enough information about the audit, the auditors are not qualified enough, the audit is misevaluated, and parties in the ecosystem have unrealistic expectations. Among the most notable suggestions to narrow the gap are educating the members of the financial reporting ecosystem and the public, updating standards, preparing guides, and using technology/data analytics methods in auditing. In addition, the importance of clarifying key concepts such as materiality, reasonable assurance, auditing, Fraud, and professional skepticism is emphasized to narrow the expectation gap.

Importance of risk exposure and risk management practices have attracted the attention of companies, investors, and all other parties who benefit from performances of companies. Competitive environment and global effects force the companies to pay attention to manage their risks. Therefore, governmental bodies and international associations embarked on researches in risk management and as a result of these efforts regulations have been put in place. Germany, USA, and UK are the leading countries that made significant progress in risk management field by enacting laws, regulations, and issuing guidelines. But the subject is still new for some countries and difficult for companies, especially small and medium sized, to apply. The chapter starts with the benefits and importance of risk management. Then steps of risk management are explained with the examples.

The internal audit function traditionally establishes and continues its activities within the company, but it can also be provided by professionals outside the organization. Therefore, internal audit activities can be provided in three ways: the internal audit department established within the organization (in-house), the internal audit service provided by an audit firm (outsourcing), the joint operation of the internal audit department and the audit firm (co-sourcing). To choose the better approach for a company, the scale of the organization, the attitude and understanding of the management, and industry in which the company operates in must be taken into consideration. This study is a literature review that classifies the studies carried out on these methods that are used in performing internal audit activities.