Bulgarian Public Sector Internal Auditor Exam flashcards

32 cards. Read the term and the definition here. The deck at the top of this page is optional.

Public Sector Internal Audit Act

Bulgarian statute that mandates internal audit across public sector organisations, defines the internal auditor's status, and assigns responsibility to heads of organisations for establishing and supporting the function.

Internal audit charter

Formal document approved by the head of the organisation that states the internal audit function's purpose, authority, responsibility, reporting lines, and unrestricted access to records, personnel, and assets.

Functional reporting line

The reporting relationship that preserves independence: the head of internal audit reports functionally to the head of the organisation on audit matters, while administrative reporting covers budgets and personnel.

Central harmonisation unit

The Ministry of Finance directorate responsible for methodological guidance, coordination, and quality assessment of internal audit across Bulgarian public sector organisations.

Objectivity

A state of mind permitting internal auditors to perform engagements without compromising quality, based on unbiased judgement free from conflicts of interest, self-review, and undue influence.

Quality assurance improvement programme

A programme covering ongoing monitoring, periodic self-assessments, and an external assessment at least every five years, with results reported to senior management and the board.

Impairment disclosure

The requirement that internal auditors disclose any independence or objectivity impairment to the head of the organisation before accepting or continuing an engagement.

Core Principles

The mandatory principles of the Global Internal Audit Standards, including integrity, objectivity, confidentiality, competency, professional behaviour, and quality assurance.

Residual risk

The level of risk remaining after management has implemented controls and treatments, calculated by reassessing likelihood and impact against the approved risk criteria.

Risk appetite

The amount and type of risk an organisation is willing to accept in pursuing its objectives, formally approved by the head of the organisation and used to prioritise audits.

Risk register

A structured record of identified risks containing descriptions, owners, inherent and residual ratings, existing controls, treatment actions, deadlines, and current status.

ISO 31000 process

A risk management cycle comprising establishing context, risk identification, analysis, evaluation, treatment, communication and consultation, and monitoring and review.

COSO five components

Control Environment, Risk Assessment, Control Activities, Information and Communication, and Monitoring Activities, which together describe an effective internal control system.

Three lines model

A governance model where operational management owns risk, risk and compliance functions provide oversight, and internal audit gives independent assurance to the board.

Segregation of duties

A preventive control that separates authorisation, custody of assets, recording, and reconciliation among different people to reduce the risk of error or fraud.

Material weakness

A deficiency or combination of deficiencies in internal control such that there is a reasonable possibility that a material misstatement will not be prevented or detected timely.

Engagement work programme

A document listing the procedures to be performed, sampling approach, evidence required, responsible auditors, and deadlines, approved before fieldwork begins.

Audit criteria

The standards, laws, regulations, or benchmarks against which the auditor compares the observed condition to determine whether a finding exists.

Risk-based annual plan

A plan prioritising audit engagements by risk score, materiality, and time since last audit, approved by the head of the organisation and revised with documented justification.

Engagement scope

The boundaries of an audit, specifying the period, locations, processes, and known exclusions, so readers understand what the conclusions cover.

Sufficient evidence

Evidence that is adequate in quantity and quality to support the auditor's conclusions, judged against the risk of error and the importance of the finding.

Reliable evidence

Evidence obtained from independent external sources, direct observation, or original documents, which is more dependable than oral representations or internally generated copies.

Working papers

Records documenting the engagement objective, procedures performed, evidence obtained, findings, conclusions, and reviewer sign-off, supporting the audit report and retained per policy.

Analytical procedures

Techniques comparing financial and non-financial data, ratios, trends, and budget-to-actual variances to identify significant unexplained differences requiring further investigation.

Audit finding elements

A finding states the condition observed, the criteria breached, the cause, the effect or risk, and a recommendation addressed to a responsible official with a deadline.

Management response

The auditee's written reply to each finding and recommendation, stating agreement or disagreement, planned corrective action, responsible person, and target completion date.

Follow-up process

Monitoring of agreed actions until implementation is verified; overdue recommendations are escalated to senior management and the board for resolution.

Closing meeting

A meeting at the end of fieldwork where the auditor confirms findings, criteria, and effects with management and agrees on corrective actions and deadlines.

Authorising officer

A public sector official responsible for committing budget funds, approving expenditure, and ensuring legality and efficiency within the allocated budget.

Public Procurement Act

Bulgarian law transposing EU procurement directives, setting procedures, thresholds, exclusion grounds, award criteria, and limits on contract amendments.

Conflict of interest declaration

A written statement by officials or auditors disclosing personal, financial, or family interests that could influence decisions, leading to exclusion from the affected process.

External quality assessment

An independent review of the internal audit function at least every five years, concluding generally conforms, partially conforms, or does not conform, with a published action plan.