AUD Mnemonics 2

Question 1

10 GAAS (TIP PIE ACDO)

Answer 1

T-Training and Proficiency
I-Independence
P-Due Professional Care
P-Planning and Supervision
I-Internal Control
E-Evidence
A-GAAP
C-Consistency
D-Disclosure
O-Opinion

Question 2

Components of I/C (CRIME)

Answer 2

C-Control Activities (PIPS)(ARC)
R-Risk Assessment
I-Information and Communication
M-Monitoring
E-Control Environment (I,CHAMBO)

Question 3

Control Activities (PIPS)

Answer 3

I say! These control activities are pips!

P-Performance Reviews
I-Information Processing
P-Physical Controls
S-Segregation of Duties

Question 4

Segregation of Duties (ARC)

Answer 4

A-Authorization
R-Recording
C-Custody

Question 5

Control Environment (I,CHAMBO)

Answer 5

I-Integrity and Ethical Values
C-Commitment to competence
H-HR policies and practices
A-Assignment of authority and responsibility
M-Management philosophy and operating style
B-BOA or AC participation
O-Organizational structure

Question 6

Tests of Controls (IRON)

Answer 6

I-Inquiry
R-Reperformance
O-Observation
N-Inspection

Question 7

Elements of quality control (HELPME)

Answer 7

H-Human resources
E-Engagement/Client acceptance and continuance
L-Leadership responsibilities
P-Performance of the engagement
M-Monitoring
E-Ethical requirements

Question 8

Tracing is used to test for _______ and is going from the ______ to the _____.

Answer 8

Completeness. Source Docs to the F/S.

Question 9

Vouching is used to test for _______ and is going from the ______ to the _____.

Answer 9

Existence. F/S to the Source Docs.

Question 10

Assertions about transaction classes (CPA-CO)

Answer 10

C-Completeness/Cutoff
P-Presentation
A-Accuracy
C-Classification
O-Occurence

Question 11

Assertions about account balances (CARE)

Answer 11

C-Completeness/Cutoff
A-Allocation and Valuation
R-Rights and obligations
E-Existence

Question 12

Assertions about disclosures (CURV)

Answer 12

C-Completeness/Cutoff
U-Understandability
R-Rights and Obligations
V-Valuation and Allocation

Question 13

Structure of unmodified report (TIMAA-EMO)

Answer 13

T-Title, includes the word "independent"
I-Introduction
M-Managements Responsibility
A-Auditors Responsibility
A-Auditors Opinion
EMO - Emphasis of Matter/Other Matter

Question 14

Structure of modified report (TIMA-BA)

Answer 14

T-Title, includes the word "independent"
I-Introduction
M-Managements Responsbility
A-Auditors Responsibility
B-Basis of Opinion
A-Auditors Opinion

Question 15

Alerts as to Intended Use (CRAP)

Answer 15

C-Contractual Agreements
R-Regulations
AP- Agreed Upon Procedures

Question 16

Fraud Triangle (RIO)

Answer 16

R-Rationalization
I-Incentive
O-Oppurtunity

Question 17

Attribute Sampling Steps

Answer 17

1. Calculate sample deviation rate
2. Calculate upper precision limit (SDR+Allowance)
3. Conclude (UPL TL, CR increased)