Chap Nine Managing The Internal Audit Function Flashcards Preview

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Flashcards in Chap Nine Managing The Internal Audit Function Deck (16):

Internal audit charter

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


Individual objectivity

And unbiased mental attitude that allows internal auditors to perform and gauge meant in such a manner that they are have an honest belief in their work product and that no significant quality compromises are made. Objectivity requires internal auditors not too subordinate nate their judgment on what it matters to that of others


Organizational independence

The chief audit executive's line of reporting with in the organization that allows the internal audit function to fulfill its responsibilities free from interference



The knowledge, skills, and other competencies internal auditors need to perform their individual responsibilities


Audit universe

A compilation of the subsidiaries, business units, departments, groups, processes, or other established subdivisions of and organize Asian that exist to manage one or more business risks


Internal audit plan

An outline of the specific insurance and consulting engagements scheduled for a period of time open (typically one year) based on an assessment of the organization's risk


The internal auditor competency framework

This resource, published by the I I a, outlines the minimal level of knowledge and skills internal auditors should have at different points in their careers in four areas:

-Interpersonal skills

-Tools and techniques

-Internal audit standards

-Knowledge areas


Strategic sourcing

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 for filling a gap in needed resources to complete the internal audit plan


Independent outside auditor

A registered public accounting firm, hired by the organization's board or executive management, to perform a financial statement audit



And organizations governing body, such as a board of directors, super visor he bored, 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


Quality assurance

The process of assuring that and internal audit function operates according to a set of standards defining the specific elements that must be presented to ensure that the findings of the internal audit function are legitimate


Non-conformance with the standards

Occurs when the internal function is found to be deficit to the point that it impacts the overall scope or operation of the internal audit function. Nonconformance must be disclosed


Quality assurance and improvement program

An ongoing and periodic assessment of the entire spectrum of audit and consulting work performed by the internal audit function


Control self-assessment

A facilitated process whereby control owners provide a self-assessment of the design adequacy and operating effectiveness of controls for which they are responsible


Continuous auditing

The use of computerized techniques to perpetually audit the processing of business transactions


Chief audit executive

A senior position with in 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