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Glossary

Key terms used throughout LOQI Audit and the internal audit profession.

A​

Action Plan​

A documented set of steps that management commits to take in order to address an audit finding. Includes responsible person, target date, and specific actions.

Action Tracker​

The LOQI module for tracking remediation actions from audit findings through to closure. Management updates progress; auditors verify completion.

Annual Plan​

The yearly schedule of audits approved by the CAE and audit committee. Built from the audit universe risk assessment and available resources.

Attribute​

A specific characteristic tested during a procedure. For example, when testing expense approvals, attributes might include "Approval signature present," "Within authority limit," and "Supporting documentation attached."

Audit Program​

The complete set of objectives, procedures, and testing attributes for an engagement. Defines what will be tested, how, and what to look for.

Audit Universe​

The complete inventory of auditable entities (business units, processes, systems) in your organization. Each entity has a risk score that drives audit planning.

C​

CAE​

Chief Audit Executive. The head of the internal audit function. In LOQI, this is the highest audit role with full access to all features.

Citation​

A reference from AI-generated content to a specific passage in a source document. Citations are clickable — you can verify any AI claim against the original text.

Condition​

One of the 5 C's. What you actually found during testing — the factual description of the issue.

Corrective Action​

One of the 5 C's. The recommended fix or improvement to address the finding.

Criteria​

One of the 5 C's. What should be — the standard, policy, regulation, or expectation against which you're comparing.

Cause​

One of the 5 C's. Why the issue occurred — the root cause of the gap between criteria and condition.

Consequence​

One of the 5 C's. The impact or risk resulting from the finding — what could go wrong or what has already gone wrong.

D​

Document Library​

Your organization's shared repository of reference documents (policies, regulations, standards). Documents are indexed for AI search and citation.

E​

Engagement​

A single audit project in LOQI. Contains all related objectives, procedures, documents, findings, and the final report.

Evidence​

Documents, data, or records that support audit conclusions. Can be uploaded by the audit team or provided by management via PBC requests.

Evidence Request​

See PBC.

Exception​

A test result where a sample item fails to meet one or more testing attributes. Exceptions may be escalated to findings if significant.

Executive Report​

A summary report for senior management and the audit committee, aggregating results across multiple engagements with analytics and dashboards.

F​

Fieldwork​

The phase of an audit where testing is performed, evidence is collected, and findings are documented. Follows planning and precedes reporting.

Finding​

An audit observation documenting an issue discovered during testing. Structured using the 5 C's framework (Condition, Criteria, Cause, Consequence, Corrective Action).

5 C's Framework​

The structured framework for documenting audit findings: Condition (what is), Criteria (what should be), Cause (why), Consequence (impact), Corrective Action (fix).

I​

Interview​

A structured conversation with a stakeholder during audit planning or fieldwork. LOQI supports interview planning, recording, transcription, and AI-powered summarization.

L​

Lead Auditor​

The auditor responsible for managing and executing an engagement. Assigned in the engagement overview.

O​

Objective​

A high-level goal of the audit program, typically linked to a risk area. Each objective has one or more procedures to test it.

Observation​

See Finding. The terms "observation" and "finding" are used interchangeably.

P​

PBC​

"Prepared By Client." A formal request sent to management or process owners asking them to provide specific documents or information. Recipients receive a secure link to upload evidence.

Procedure​

A specific test step within the audit program. Defines what to test, how to test it, the sample size, and the testing attributes. Procedures are assigned to auditors and tracked through completion.

R​

RAG​

Retrieval-Augmented Generation. The technique LOQI uses to ground AI outputs in your actual documents. When the AI generates content, it first retrieves relevant passages from your documents, then generates text that cites those passages.

Review Round​

A structured feedback cycle where stakeholders review the draft audit report and provide comments or suggested edits. Multiple rounds are supported.

Risk Analysis​

The process of identifying and scoring risks before creating the audit program. In LOQI, AI analyzes your uploaded documents to extract risk items, which you then review and adjust.

Risk Score​

A rating assigned to each risk item or auditable entity, typically High, Moderate, or Low. Drives audit priority and program focus.

RLS (Row-Level Security)​

A database-level mechanism that ensures users can only see data belonging to their organization. You won't interact with RLS directly, but it protects your data from cross-organization access.

S​

Sample​

A subset of items selected for testing. For example, if there are 500 transactions in the audit period, you might sample 25 for detailed testing.

Sign-off​

Formal approval of the audit report by designated individuals. LOQI tracks three sign-offs: Prepared by (lead auditor), Reviewed by (supervisor), and Approved by (manager/CAE).

Stakeholder​

A person outside the audit team who has a role in the audit process — typically management, process owners, or board members. Stakeholders may review reports, respond to findings, or submit evidence.

Strategic Plan​

A multi-year audit plan that maps which auditable entities will be audited in which year, based on risk scores and audit cycle requirements.

Supervisor​

The auditor who oversees and reviews the work of the lead auditor. Can approve audit programs and review workpapers.

T​

Testing Sheet​

The structured grid where you record test results for each sample item against each testing attribute. Part of the workpaper for a procedure.

W​

Workpaper​

The complete documentation of work performed for a procedure — including the testing sheet, sample selection rationale, results summary, exceptions, and conclusions.