A
Audit Trail
DEFINITION
Traceable record of transactions and changes.
MEANING
Essential for audits and investigations.
EXAMPLE
Logged changes in accounting entries.
C
Control Effectiveness Rate
DEFINITION
Percentage of controls operating effectively.
MEANING
Measures internal control quality.
EXAMPLE
85 percent effective controls.
Control Failure Rate
DEFINITION
Percentage of failed controls.
MEANING
Indicates fraud exposure.
EXAMPLE
Multiple failed dual controls.
Control Override Red Flag
DEFINITION
Frequent bypassing of controls.
MEANING
Signals abuse of authority.
EXAMPLE
Repeated manual overrides.
E
External Audit Detection
DEFINITION
Fraud identified by external auditors.
MEANING
Focuses on financial reporting.
EXAMPLE
Audit flags material misstatements.
I
Internal Audit Detection
DEFINITION
Fraud detected through internal audit activities.
MEANING
Effective for process-related issues.
EXAMPLE
Audit identifies altered entries.
O
Override Frequency
DEFINITION
Number of control overrides.
MEANING
High frequency indicates risk.
EXAMPLE
Frequent manual approvals.
Override of Approval Limits
DEFINITION
Splitting transactions below thresholds.
MEANING
Suggests deliberate avoidance.
EXAMPLE
Payments split under approval limits.
S
Segregation of Duties
DEFINITION
The separation of key process steps across different people or roles.
MEANING
It reduces the risk of end-to-end fraud by a single individual.
EXAMPLE
The user creating vendors cannot approve payments.