Module Nine - Audit and Change Flashcards
What is an audit
The evaluation of something to a predefined criteria
Why are audits conducted
To establish the validity and reliability of information and processes
What is the goal of an audit
To form an objective opinion relating back to audit standards
what is an external auditor
Employed by a Business for annual reviews
What is an internal auditor
Qualified company employee who checks records
What three things does an external auditors report show
- Free from material mis statement 2. Free from errors 3. Are a true and fair reflection
What is an audit report
A time related snap shot
What is the most common type of audit report known as
Unqualified opinion
What is the role of an internal auditor
To advise the business on how they can better achieve their objectives
What three things under COSO should an internal audit look at
- Effectiveness of Business Operations 2. Reliability and Quality of Financial Reporting 3. Compliance with laws and regulations
What are the 5 interrelated components of COSO
- Control Environment 2. Risk Assessment 3. Control Activities 4. Information & Communication 5. Monitoring
What is ERM and what does it do
Enterprise Risk Management - Internal Audit Managing risk using a system such as SOX
What are the 4 types of audit
- Transaction Based 2. Results Based 3. Systems Based 4. Risk Based
