Or. Admin. Code § 125-700-0015 - Definitions
(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.
Notes
Statutory/Other Authority: ORS 184.360
Statutes/Other Implemented: ORS 184.360(3)
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