Part 2: Internal Audit Practice Part 2: Internal Audit Practice

Section III Section III

Channel stuffing Data mining

©2013 ©2013

Part 2: Internal Audit Practice Part 2: Internal Audit Practice

Section III Section III

Forensic auditing Fraud

©2013 ©2013

Part 2: Internal Audit Practice Part 2: Internal Audit Practice

Section III Section III

Fraud risk Regression analysis

©2013 ©2013

Part 2: Internal Audit Practice Part 2: Internal Audit Practice

Section III Section III

Risk analysis Risk assessment

©2013 ©2013
 Definition
The capability of sifting through and analyzing
large volumes of data to find certain patterns or
associations.
The IIA’s CIA Learning System®
Definition
Any illegal acts characterized by deceit,
concealment, or violation of trust.
The IIA’s CIA Learning System®
Definition
A statistical technique used to measure the
amount of change in one value in relation to a
change in another value.
The IIA’s CIA Learning System®
Definition
The identification of risk, the measurement of
risk, and the process of prioritizing risk
(considering likelihood and impact) or selecting
alternatives based on risk.
The IIA’s CIA Learning System®
Definition
The practice of inflating sales figures by forcing
more products through a distribution channel
than the channel can actually sell.
The IIA’s CIA Learning System®
Definition
The application of auditing skills to gather
evidence that may be used in a court of law for a
criminal or civil matter.
The IIA’s CIA Learning System®
Definition
The probability that fraud will occur and the
potential severity or consequences to the
organization when it occurs.
The IIA’s CIA Learning System®
Definition
The identification of risk, the measurement of
risk, and the process of prioritizing risk or
selecting alternatives based on risk.
The IIA’s CIA Learning System®