Illegal activities
Act or conduct that is prohibited by law or by official and accepted
policies and procedures.
Image processing systems
Scan documents into electronic images for storage. Reference and source
documents may not be retained after conversion.
Immaterial
Of no importance or minor effect.
Implicitly
Implied or understood even though not directly expressed.
Implied control performance
Deals with expected changes to data.
Improper disclosure of financial records
Careless, unlawful, or fraudulent conduct in recording, preparing,
reporting, or disclosing of either the value or the content of a contract,
report, statement, document, record, or electronic file.
Improper receiving
or giving of gifts
Giving, receiving or solicitation of items intended to influence
a business relationship, decision making, or contract negotiation
for the benefit of an individual or an individual’s family or
friends.
Improper supplier
or contractors activities
Activity or behavior that is in violation of the College’s
current policies and procedures. Improper selection of suppliers or
contractors based on personal gain, and improper negotiation or diversion
of contract awards.
Improper use of intellectual
property
Unlawful and improper use of tangible and intangible property
that is the result of intellectual efforts and which stems from the
exercise of the mind and enjoys legal protection as covered by Federal
Copyright Law.
Incompatible duties
Internal control systems rely on separation of duties to
reduce the chance of errors or fraud. Duties are incompatible if they
should be separated for control. For example, one person should not
be in a position to both embezzle funds and to hide the embezzlement
by changing the recorded accountability.
Incorrect acceptance
The risk of incorrect acceptance is the risk the sample supports
the conclusion that the recorded balance is not materially misstated
when it is materially misstated.
Incorrect rejection
The risk of incorrect rejection is the risk the sample supports
the conclusion that the recorded balance is materially misstated when
it is not materially misstated.
Independence
In all matters relating to the assignment, an independence in mental
attitude is to be maintained by the auditors. This means freedom from
bias.
Independent appearance
The outward impression of being self-governing and free from conflict
of interest and undue influence.
Independent attitude
Impartial point of view which allows the auditor to act objectively
and with fairness.
Information systems
Consist of infrastructure, physical and hardware components,
software, people, procedures (manual and automated), and data.
Information Systems Audits
Type of audit that address the internal control environment
of automated information processing systems and how people use those
systems. Information systems audits typically evaluate system input,
output, processing controls, backup and recovery plans, system security,
and computer facility reviews. Information system auditing projects
can focus on existing systems as well as systems in the development
stage. External specialized expertise may be required to conduct specialized
information systems audits.
Inherent risk
The susceptibility of an audit area to error which could be material,
individually or in combination with other errors, assuming that there
are no related internal controls.
Input controls
Computer controls designed to provide reasonable assurance that transactions
are properly authorized before processed by the computer, accurately
converted to machine readable form and recorded in the computer, that
data files and transactions are not lost, added, duplicated or improperly
changed, and that incorrect transactions are rejected, corrected and,
if necessary, resubmitted on a timely basis.
Inspect
As an audit procedure, to scrutinize or critically examine
a document. As part of an Auditor’s quality control system,
to monitor the effectiveness of the system.
Integrated test facility
A "dummy" unit (e.g., a department or employee)
is established. Test (fictitious) transactions are posted to the dummy
unit during the normal processing cycle. If test transactions are
processed correctly that provides evidence that transactions of other
units are processed correctly as well.
Integrity
The accuracy and completeness of information as well as to its validity
in accordance with business values and expectations.
Interim audit procedures
Done during the year under audit, before year-end.
Interim financial
information
Financial statements of a time period less than a full year.
Internal auditors
Employees responsible for providing analyses, evaluations,
assurances, recommendations, and other information to the entity's
management and board. An important responsibility of internal auditors
is to monitor performance of controls.
Internal control
The policies, procedures, practices and organizational structures
designed to provide reasonable assurance that business objectives
will be achieved and that undesired events will be prevented or detected
and corrected.
Internal control questionnaire
A list of questions about the existing internal control system
to be answered (with answers such as yes, no, or not applicable) during
audit fieldwork. The questionnaire is a part of the documentation
of the auditor's understanding of the client's internal controls.
Internal control structure
The dynamic, integrated processes, effected by the governing body,
management and all other staff, that are designed to provide reasonable
assurance regarding the achievement of the following general objectives:
(1) Effectiveness, efficiency and economy of operations. (2) Reliability
of management. (3)
Compliance with applicable laws, regulations and internal policies.
(4) Management's strategies for achieving these general objectives
are affected by the design and operation of the following components:
(1) Control environment. (2) Information system. (3) Control procedures.
Internal control
weakness
A defect in the design or operation of internal controls.
A material weakness is a reportable condition that does not reduce
to a relatively low level the risk that material errors or fraud would
not be detected in a timely manner by employees in the normal course
of their duties.
Internet
Two or more networks connected by a router. The world's largest network
using TCP/IP protocols to link government, higher Education institutions,
and commercial institutions.
Internet service provider
A third party that provides organizations with a variety of Internet, and Internet-related services.
Intrusion
Any intentional violation of the security policy of a system.
Inventory tag
A tag attached to inventory items that identifies the inventory
items to aid in counting the physical inventory.
Investigative Audits
Type of audit performed when appropriate or when requested.
These audits focus on alleged civil or criminal violations of State
or Federal laws or violations of established management policies and
procedures that may result in prosecution or disciplinary action.
Internal theft, misuse of College’s assets, and conflicts of
interest are examples of reasons for investigative audits.
Invoice
An itemized list of goods shipped, or services rendered with
costs.
Irregularities
Intentional violations of established management policy or regulatory
requirements. Deliberate misstatements or omissions of information
concerning the area under audit or the organization as a whole; gross
negligence or unintentional illegal acts.
IT governance
A structure of relationships and processes to direct and control the
enterprise in order to achieve the enterprise’s goals by adding
value while balancing risk versus return over IT and its processes.
