Module D: Internal Audits, Governmental Audits, and Fraud Examinations Flashcards
Audit charter
The internal audit charter is a formal document that defines the internal audit activity’s purpose, authority, and responsibility. The internal audit charter establishes the internal audit activity’s position within the organization, including the nature of the chief audit executives functional reporting relationship with the board; authorizes axes to records, personnel, and physical properties relevant to the performance of engagements; and defines the scope of internal audit activities.
compliance audit
An examination designed to ensure that an organization is following applicable laws, regulations, and management directives; usually performed by internal auditors but may be performed by governmental or external auditors as well.
environmental audit
An examination designed to ensure than an organization is following environmental standards established by laws, regulations, and management directives; may recommend methods of reducing environmental problems by reducing or reusing waste or byproducts of an organization’s processes.
exit conference
A meeting that occurs at the end of an internal audit between the auditors and management of the organization being audited in many external audits and is a required part of an internal audit.
follow-up
A process required of internal auditors to ensure that significant audit findings have been addressed by the audit in accordance with the agreement between the auditor and management.
forensic accounting
The application of accounting and auditing evidence to resolve legal issues in civil and criminal law.
governance audit
An examination designed to provide management the information required to make governance decisions or to ensure that high-quality information is provided for these decisions.
internal auditing
An examination service provided to a company to assist the company to meet its corporate goals and objectives by evaluating and recommending risk management, control, and governance processes.
operational auditing
An examination designed to evaluate the processes and procedures of an organization or an area within an organization to ensure the process or area is operating efficiently and effectively.
performance audit
An examination designed to ensure that the resources of an organization are being used appropriately and that its objectives are being met.
predication
A suspicion that a fraud may have occurred.
quality control audit
An examination designed to ensure than an organization is meeting its quality control standards; usually involves determining that personnel responsible for performing quality control are meeting the goals and objectives established and that quality information is being reported to appropriate members of management.
single audit
A governmental examination standard that allows an entity to receive one audit of its financial statements, compliance with laws and regulations, and internal control that will be utilized by multiple agencies granting money to the entity.
Yellow Book
The common name used to refer to the generally accepted government auditing standards (GAGAS).
