Oregon Administrative Rules › Chapter 125 - DEPARTMENT OF ADMINISTRATIVE SERVICES › Division 700 - INTERNAL AUDITING › Section 125-700-0015 - Definitions

Current through Register Vol. 63, No. 7, July 1, 2024
(1) Agency: "State
			 Agency" means any elected or appointed officer, board, commission, department,
			 institution, branch, or other unit of the state government.
(2) Assurance Audit Services: An objective
			 examination of evidence for the purpose of providing an independent assessment
			 on governance, risk management, and control processes for the organization.
			 Examples may include financial, performance, compliance, system security, and
			 due diligence engagements.
(3)
			 Consultation Audit Services: Advisory and related client services activities,
			 the nature and scope of which are agreed with the client, are intended to add
			 value and improve an organization's governance, risk management, and control
			 processes without the internal auditor assuming management responsibility.
			 Examples include counsel, advice, facilitation, and training.
(4) Audit Committee: A committee that
			 provides oversight of internal auditing for the agency. The purpose of the
			 audit committee is to enhance the quality and independence of the internal
			 audit function, thereby helping to ensure the integrity of the internal audit
			 process.
(5) Chief Audit Executive:
			 Top position within the organization responsible for internal audit activities.
			 Normally, this would be the internal audit director. In the case where internal
			 audit activities are obtained from outside service providers, the chief audit
			 executive is the person responsible for overseeing the service contract and the
			 overall quality assurance of these activities, reporting to senior management
			 and the board regarding internal audit activities, and follow-up of engagement
			 results.
(6) Internal Audit
			 Function: A program within an agency that provides independent, objective
			 assurance and consulting services designed to add value and improve an
			 organization's operations and facilitate oversight, accountability, and
			 transparency.
(7) Internal Audit
			 Services: Specific activities provided by auditors within the internal audit
			 function. Examples include risk assessments, assurance audit services, and
			 internal audit plans.
(8) Internal
			 Auditing: An independent, objective assurance and consulting activity designed
			 to add value and 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.
(9)
			 Professional Auditing Standards: Principles established to ensure the
			 competence and independence of the audit function and the quality of audit
			 work. The Code of Ethics and International Standards for the Professional
			 Practice of Internal Auditing promulgated by the Institute of Internal
			 Auditors, and Generally Accepted Government Auditing Standards, promulgated by
			 the Government Accountability Office, are the two major sets of standards that
			 govern both the conduct of audit work and the audit function.
(10) Risk: The possibility of an event
			 occurring that will have an impact on the achievement of objectives. Risk is
			 measured in terms of impact (the effect) and likelihood (the probability the
			 event will occur).
(11) Risk
			 Assessment: A process of identifying, analyzing, and prioritizing risks to the
			 achievement of an agency's mission, goals, or objectives.
(12) Risk Management: A process to identify,
			 assess, manage, and control potential events or situations to provide
			 reasonable assurance regarding the achievement of the organization's
			 objectives.
(13) Cash Equivalents:
			 Cash equivalents are the total value of cash on hand that includes items that
			 are similar to cash; low-risk securities include U.S. government T-bills, bank
			 CD's, bankers' acceptance, corporate commercial paper, and other money market
			 instruments. For the purpose of this rule the amount reflected in Oregon
			 Accounting Manual GL3100 will be used.
(14) Audit Plan (Risk Based): A Plan to
			 determine the priorities of the internal audit function, consistent with the
			 agency's goals.
(15) Quality
			 Assurance and Improvement Plan (QAIP): An evaluation of whether the internal
			 audit activity is in conformance with professional standards.
(16) External Assessment: An assessment by a
			 qualified, independent assessor or assessment team from outside the
			 organization in the form of a full external assessment or an internal
			 assessment with external validation.
(17) Independence: Freedom from conditions
			 that threaten the ability of the internal audit activity to carry out internal
			 audit responsibilities in an unbiased manner.
(18) Objectivity: An impartial, unbiased
			 attitude and avoidance of conflicts of interest.
(19) Cash Revenue: Any and all cash income
			 realized as a result of operating activities calculated in accordance with
			 generally accepted accounting principles.
Statutory/Other Authority: ORS
				  184.360
Statutes/Other Implemented: ORS
				  184.360(3)