Seminar in Accounting, Chapter 1: "Introduction to Internal Auditing" flash cards -

Internal Auditing

(1.2) An independent, objective assurance and consulting activity designed to improve an organization’s operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes.

Objective

(1.2) An outline that organizations use to define what they want to achieve. The organization’s ongoing success depends on whether they are accomplished.

Strategic Objective

(1.2) A goal that management sets that is specifically related to stakeholder interests.

Operations Objective

(1.2) The effectiveness and efficiency of an entity’s operations.

Reporting Objective

(1.2) Internal and external financial and nonfinancial reporting goals.

Risk Management

(1.2) The process, conducted by management, to understand and deal with uncertainties (risks and opportunities) that could affect the organization’s ability to achieve its objectives.

Governance

(1.2) The process conducted by the board of directors to authorize, direct, and oversee management toward the achievement of the organization’s objectives.

Control

(1.2) The process conducted by management to mitigate risks to acceptable levels.

Independence

(1.3) the freedom from conditions that threaten the ability of the internal audit function to carry out audit responsibilities free from interference.

Objectivity

(1.3) An unbiased, mental attitude.

Engagement

(1.3) A specific internal audit assignment or project that includes multiple tasks or activities designed to accomplish a specific set of objectives.

Institute of Internal Auditors

(1.5) The internal audit profession’s global voice, standard-setter, and resource for professional development and certification. Simply referred to as the IIA.

Competence

(1.6) The skills and knowledge required to provide assurance and advisory services to add value.

Credibility

(1.6) The ability to inspire trust based on consistent competence and integrity.

Connectivity

(1.6) The ability to understand the needs of each of the stakeholders individually within the greater whole of the organization.

Communication

(1.6) The methods of relaying information (orally and in multiple written forms) and listening to the individual served.

Courage

(1.6) The personal fortitude to remain independent and objective and to stand by the results of the engagements conducted.