A.I. Basics
This term refers to the simulation of human intelligence by machines.
What is Artificial Intelligence
This is the initial phase of an audit where auditors gather information about the client and its environment.
What is Background Research?
This type of risk exists before any controls are applied.
What is Inherent Risk?
This term refers to the system by which organizations are directed and controlled.
What is Governance?
A set of rules and principles that guide behavior within an organization or group.
What is a Code of Conduct?
This AI tool, developed by OpenAI, can assist auditors in drafting reports or analyzing data.
What is ChatGPT?
This systematic approach is used by auditors to gather information and perform fieldwork tests during the audit.
What is Audit Methodology?
These controls are designed to stop errors or fraud before they occur.
What are Preventive Controls?
Policies, procedures, and practices a company puts in place to minimize risks and provide reasonable assurance.
What are Internal Controls?
This refers to systematic errors in judgment and decision-making processes, which potentially lead to inaccurate or unfair assessments.
What is Bias?
This Microsoft tool uses AI to help auditors write, analyze, and visualize reports.
What is Microsoft Copilot?
Before being finalized, this preliminary document that outlines the audit findings, conclusions, and recommendations, must be approved by Audit Management and shared with key stakeholders for their feedback.
What is a Draft Report?
These controls identify errors or fraud after they have occurred.
What are Detective Controls?
Defined as freedom from conditions that threaten the ability to carry out responsibilities in an unbiased manner.
What is Independence?
Auditors must avoid using overly technical language, also known as this.
What is Jargon?
This term refers to the specific input or instruction given to an AI model to generate a response.
What is a Prompt?
This meeting marks the start of an audit and sets expectations with the client.
What is an Entrance Conference?
This term refers to the intentional misuse or theft of assets by an employee; embezzlement.
What is Misappropriation?
Also known as "The Redbook", these standards provide a framework for evaluating and improving the quality of internal audit functions.
What are the IIA's Global Internal Audit Standards?
This process involves removing sensitive and confidential information from documents before sharing them.
What is Redaction?
This type of AI creates new content, such as text, images, or audio, based on patterns in data.
What is Generative AI?
This framework outlines the five components of internal control, which include Control Environment, Risk Assessment, and Control Activities.
What is the COSO Internal Controls Framework?
Deliberate deception intended to secure unfair or unlawful gain.
What is Fraud?
This component ensures that relevant information is identified, captured, and communicated to the appropriate parties, enabling them to carry out their responsibilities.
What is the Information & Communication component of COSO?
This information is gathered by auditors to support their opinions on a company's financial statements, internal controls, and compliance.
What is Audit Evidence?