All this data is potentially out of date, and should be taken with a truckload of salt
AURORA stands for "Auxiliary Union for Rallying, Observation, Recording, Analysis" and was formerly a department of ISD. They were responsible for writing in-character news articles and running in-game events. Events focused on the plot and back-story of the EVE universe and were lead by volunteer actors roleplaying the important people with backing from the fiction team of CCP.
AURORA was disbanded by CCP in August 2008, officially over concerns that the volunteer event group could not scale with the growing player base (then about 30k peak concurrent). The job of writing news articles and the like was passed on to ISD Mercury around March of 2008 and initially led by ISD Galen, the former lead of AURORA. No new event team has materialized as yet, though various CCP devs have expressed interest in a new system for events or giving players tools to set up their own events complete with mission deadspaces.