Objectivity
The auditor objectivity depends on the organizational status of the
internal audit function, whether the internal auditor has direct access
and reports regularly to the board, the audit committee, or owner-manager,
and who oversees internal auditor employment decisions.
Observe
Watch and test a client action.
Offensive or inappropriate communication
Verbal or written use of inflammatory, derogatory, unduly
critical, or insulting communication to an individual.
Offline files
Computer file storage media not physically connected to the computer;
typically tapes or tape cartridges used for backup purposes.
Offsite storage
A storage facility located away from the building housing the primary
information processing facility (IPF), used for storage of computer
media such as offline backup data and storage files.
Online
Access to a computer for immediate processing without having
to wait for a batch of transactions to be processed at a later time.
Online data processing
Processing is achieved by entering information into the computer via
a video display terminal. The computer immediately accepts or rejects
the information, as it is entered.
Operating effectiveness
How an internal control was applied, the consistency with
which it was applied, and by whom.
Operating income
From continuing operations is reported on an income statement.
Operating system
A master control program that runs the computer and acts as a scheduler
and traffic controller. It is the first program copied into the computer's
memory after the computer is turned on and must reside in memory at
all times. It is the software that interfaces between the computer
hardware (disk, keyboard, mouse, network, modem, printer) and the
application software (word processor, spreadsheet, e-mail), which
also controls access to the devices and is partially responsible for
security components and sets the standards for the application programs
that run in it.
Operating system audit trails
Records of system events generated by a specialized operating system
mechanism.
Operational audit
Sometimes called program or performance audits, examine the use of
unit resources to evaluate whether those resources are being used
in the most efficient and effective ways to fulfill the unit’s
mission and objectives. An operational audit includes elements of
a compliance audit, a financial audit, and an information systems
audit.
Opinion
An Auditor’s conclusion held with confidence but not
substantiated by positive knowledge or proof.
Opinion paragraph
The paragraph in the audit report that expresses the auditor's
conclusions. The wording of the standard, unqualified opinion paragraph
is: "In our opinion, the financial statements referred to above
present fairly, in all material respects, the financial position of
[XYZ Company] at December 31, [year], and the results of its operations
and its cash flows for the year then ended in conformity with U.S.
generally accepted accounting principles."
Output analyzer
Checks the accuracy of the results produced by a test run. There are
three types of checks that an output analyzer can perform. 1) if a
standard set of test data and test results exists for a program, the
output of a test run after program maintenance can be compared with
the set of results that should be produced. 2) as programmers prepare
test data and calculate the expected results, these results can be
stored on a file and the output analyzer compares the actual results
of a test run with the expected results. 3) the output analyzer can
act as a query language; it accepts queries about whether certain
relationships exist in the file of output results and reports compliance
or noncompliance.
Outsourcing
A formal agreement with a third party to perform a service for an
organization.
Overall review
The objective of the overall review stage of the audit is
to assess conclusions reached, and evaluate the overall financial
statement presentation. The overall review includes reading the financial
statements and notes and considering adequacy of evidence gathered
in response to unusual or unexpected balances. Results of an overall
review may indicate the need for additional evidence.
