Term
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Definition
| A senior position within the organization responsible for internal audit activities. The term also includes titles such as general auditor, head of internal audit, chief internal auditor, internal audit director, and inspector general. |
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Term
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Definition
| A formal written document that defines the internal audit function's purpose, authority, and responsibility. The internal audit charter is subordinate to the audit committee's charter. |
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Definition
| An unbiased mental attitude that allows internal auditors to perform engagements in such a manner that they have an honest belief in their work product and that no significant quality comprimises are made. Objectivity requries internal auditor not to subordinate their judgment on audit matters to that of others. |
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| Organizational Independence |
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Definition
| The chief audit executive's line of reporting within the organization that allows the internal audit function to fulfill its responsibilities free from interferences. |
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Definition
| The knowledge, skills, and other competencies internal auditors need to perform their individual responsibilites. |
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Term
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Definition
| Internal auditors must apply the care and skill expected of a reasonably prudent internal auditor, however, internal auditors are not expected to be infallible. |
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Definition
| A compilation of the subsidiaries, business units, departments or other established subdivisions of an organization that exist to manage one or more business risks. |
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Term
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Definition
| An outline of the specific assurance and consulting engagements scheduled for a period of time (typically one year) based on an assessment of the organization's risks. |
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Term
| The Internal Auditor Competency Framework |
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Definition
| This resource, published by The IIA, outlines the minimum level of knowledge and skills internal auditors should have at different points in their carrers in four areas: Interpersonal skills, Tools and Techniques, Internal audit standards, Knowledge areas. |
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Term
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Definition
| Supplements the in-house internal audit function through the use of third-party vendor services for the purposes of gaining subject matter expertise for a specific engagement or filling gap in needed resources to complete the internal audit plan. |
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Term
| Independent Outside Auditor |
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Definition
| A registered public accounting firm, hired by the organization's board or executive management, to perform a financial statement audit. |
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Term
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Definition
| An organization's governing body, such as a board of directors, supervisor board, head of an agency or legislative body, board of governors or trustees of a nonprofit organization, or any other designated body of the organization, including the audit committee, to whom the chief audit executive may functionally report. |
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Term
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Definition
| The combination of processes and structures implemented by the board to inform, direct, manage, and monitor the activities of the organization toward the achievement of its objectives. |
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Definition
The process conducted by management to understand and deal with uncertainties (that is, risks and opportunities) that could affect the organization's ability to achieve its objectives.
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Term
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Definition
| Any action taken by management, the board, and other parties to manage risk and increase the likelihood that established objectives and goals will be achieved. Management plans, organizers, and directs the performance of sufficient actions to provide reasonable assurance that objectives and goals will be achieved. |
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Term
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Definition
| The process of assuring that an internal audit function operates according to a set of standards defining the specific element that must be present to ensure that the findings of the internal audit function are legitimate. |
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Term
| Nonconformance within the Standards |
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Definition
| Occurs when the internal audit function is found to be deficient to the point that it impacts the overall scope or operation of the internal audit function. Nonconformance must be disclosed. |
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Term
| Quality Assurance and Improvement Program |
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Definition
| An ongoing and periodic assessment of the entire spectrum of audit and consulting work performed by the internal audit function. |
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Term
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Definition
| A facilitated process wherby control owners provide a self-assessment of the design adequacy and operating effectiveness of controls for which they are responsible. |
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Term
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Definition
| The use of computerized techniques to perpetually audit the processing of business transactions. |
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