Term
| Chief audit executive (CAE) |
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Definition
| Any individual employed as the highest-level internal auditor in an organization or major business segment. The CAE must report either directly or indirectly to a senior management executive or oversight function, such as an audit committee. |
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Term
| Committee of Sponsoring Organizations of the Treadway Commission (COSO) |
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Definition
| U.S. private-sector initiative, formed in 1985. Its major objective is to identify the factors that cause fraudulent financial reporting and to make recommendations to reduce its incidence. COSO has established a common definition of internal controls, standards, and criteria against which companies and organizations can assess their control systems. |
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Term
| Foreign Corrupt Practices Act (FCPA) of 1977 |
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Definition
| United States federal law requiring any company that has publicly traded stock to maintain records that accurately and fairly represent the company’s transactions; additionally, requires any publicly traded company to have an adequate system of internal accounting controls. |
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Term
| Institute of Internal Auditors (IIA) |
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Definition
| International professional association, established in 1941. The IIA is recognized as the internal audit profession’s leader in certification, education, research, and technological guidance. The IIA is the global voice of the internal audit profession: advocating its value, promoting best practices, and providing exceptional service to its members. |
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Term
| Standards for the Professional Practice of Internal Auditing (SPPIA) |
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Definition
| The criteria by which the operations of an internal audit department are evaluated and measured. |
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