Glossary

• A
• C
• D
• G
• O
• P
• R
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• V

A

Accountability

The obligation of an individual, a group, or an organization to answer for a responsibility that has been conferred. This usually entails reporting on performance, explaining any variance from agreed expectations, and taking appropriate corrective actions.

Agency, Board or Authority

A public sector organizations that:

• is established by government, but is not part of a ministry;
• is accountable to the government; and
• was assigned or delegated authority and responsibility by the government, or otherwise has statutory authority and responsibility to perform a public function or service.

Auditability

Auditability refers to the ability to carry out an audit in accordance with professional standards and internal audit policies. Although some areas may be significant, they may not be auditable for the following reasons:

• the audit team does not have or cannot acquire the required expertise,
• the selected area is undergoing significant and fundamental change,
• suitable criteria or approaches are not available to assess performance, or
• the information or evidence required is not available or cannot be obtained efficiently. 

Auditee

The entity whose performance is being audited.

Audit conclusion

An informed judgment made by an auditor based on sufficient and appropriate audit evidence.

Audit focus

Refers to the breadth and depth on an audit, the risk areas and issues selected. Since different audit offices use the term ‘audit scope’ in different ways, the Practice Guide avoids this word and instead uses the expression ‘audit focus’ to refer to the depth and breadth of an auThe breadth and depth of an audit, the risk areas, and the issues selected. Because different audit offices use the term “audit scope” in different ways, the Practice Guide avoids this word and instead uses “audit focus” to refer to the depth and breadth of an audit.dit.

Audit observation

The outcome of an objective evaluation of audit evidence against selected audit criteria.

Audit program

A detailed outline of the audit work to be undertaken during the audit examination phase to gather sufficient and appropriate evidence. Each audit activity outlined in the program includes the applicable criteria to be used and the audit steps, tasks, resources and time required to complete the work.

Audit recommendation

A measurable statement for corrective action made by the auditor and addressed to the audited entity. Recommendations must address the causes of deficiencies identified in audit reports.

C

Control

Any action taken by management, a board, or other parties to manage risk and increase the likelihood that an organization’s objectives will be achieved.

D

Due diligence

What occurs when, in support of key decisions and related management activities, an organization has:

• clarified rules, roles, and responsibilities;
• performed and documented analyses (of benefits and risks, operational requirements, options, and costs);
• consulted with other organizations; and
• obtained the necessary approvals.

G

Governance

The structures, systems, and practices an organization has in place to:

• assign decision-making authorities, define how decisions are to be made, and establish the organization’s strategic direction;
• oversee the delivery of its services and the implementation of its policies, plans, programs, and projects; and
• report on its performance in achieving intended results and use performance information to drive ongoing improvements and corrective actions.

O

Outcome

The consequences of a policy, program, initiative or activity. An intended outcome is the 'end' that is being sought by an organization, a policy, a program or an initiative.

Oversight

The responsibility to review, monitor, and supervise public sector organizations and their policies, plans, programs, and projects, to ensure that they are achieving expected results and are in compliance with applicable policies, laws, regulations, and ethical standards. Oversight is a critical governance function performed by senior management, boards of directors, committees, or other internal or external bodies.

Oversight body

A group of people with a common oversight purpose acting as an organized unit.

P

Performance audit

An independent, objective, and systematic assessment of how well government is managing its activities, responsibilities, and resources in a given sector of activity.

R

Risk

An event or action that may adversely affect an organization’s ability to achieve its objectives. Assessing risk involves considering the probability (or likelihood) of the event occurring and the potential impact of that event.

S

Significance

The relative importance of a matter within the context in which it is being considered, including quantitative and qualitative factors. Such factors include the magnitude of the matter in relation to the subject matter of the audit, the nature and effect of the matter, the relevance of the matter, the needs and interests of third parties, and the impact of the matter to the audited program or activity.

V

Value-for-money audit

An assessment of whether an organization has obtained the maximum benefit from the goods and services it both acquires and provides, within the resources available to it. Value for money is often described in terms of the “3 Es”: economy, efficiency, and effectiveness.

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