Analytical ReviewAn audit procedure that evaluates financial or operational data through analysis of plausible relationships among both financial and nonfinancial data.Audit CharterA document approved by senior management and the board that defines the purpose, authority, scope, and responsibility of the internal audit function.Audit EvidenceInformation collected by an auditor to support audit findings and conclusions. It should be sufficient, relevant, and reliable.Audit PlanA detailed outline describing the scope, objectives, timing, and resource allocation for a specific audit engagement.Audit RiskThe risk that an auditor may issue an incorrect opinion on the subject matter being audited. It is composed of inherent risk, control risk, and detection risk.Audit TrailA chronological record of system activities that enables the reconstruction and examination of a sequence of events in a transaction from initiation to output.Audit UniverseThe complete list of all auditable entities within an organization, used to develop risk-based audit plans.CAAT (Computer-Assisted Audit Techniques)Tools and techniques such as generalized audit software, test data, and parallel simulation used by auditors to automate audit procedures.Compliance TestingAudit testing that gathers evidence to determine whether controls are being applied in a manner consistent with management policies and procedures.Control ObjectiveA statement of the desired result or purpose to be achieved by implementing control procedures in a particular process.Control RiskThe risk that a material error exists and will not be prevented or detected in a timely manner by internal controls.Control Self-Assessment (CSA)A methodology used to review key business objectives, risks, and controls. It involves business unit management and staff in assessing controls.Corroborative EvidenceEvidence obtained from a different source that confirms or supports the initial audit findings.Detection RiskThe risk that audit procedures will fail to detect a material error or misstatement that exists in the subject matter.Engagement LetterA formal document that defines the terms and scope of an audit engagement between the auditor and the auditee.Evidence HierarchyThe ranking of audit evidence by reliability, from most to least reliable: physical examination, confirmation, documentation, observation, and inquiry.Follow-Up AuditAn audit conducted to verify that agreed-upon corrective actions from a prior audit have been implemented effectively.Generalized Audit Software (GAS)Software used by auditors to access and analyze data from various systems, perform calculations, and generate reports for audit purposes.Inherent RiskThe risk level or exposure to a material error without considering the effect of internal controls. It is influenced by the nature of the business and the complexity of transactions.Integrated AuditAn audit approach that combines financial, operational, and compliance audit procedures to provide a comprehensive assessment of controls.ISACA Code of Professional EthicsA set of principles and guidelines that ISACA members and certification holders must follow, including supporting professional standards and acting with integrity.MaterialityThe significance of an item or event in the context of the overall audit. An error is material if its knowledge would influence the decision of the audit report user.Risk-Based AuditingAn audit methodology that focuses resources on areas of highest risk to the organization, rather than auditing all areas equally.SamplingThe process of selecting a subset of items from a population for testing. It can be statistical (random) or judgmental (nonstatistical) and is used when testing 100% of items is impractical.Substantive TestingAudit procedures designed to detect material errors or misstatements in account balances, transactions, or data. These tests verify accuracy and completeness of information.Test Data MethodAn audit technique that uses dummy transactions to verify that system controls function correctly. The auditor processes fabricated data through the production system.Variable SamplingA statistical sampling technique used to estimate the monetary value or quantity of a population, commonly applied in substantive testing.