AUD Mnemonics Flashcards
AFRF
Applicable Financial Reporting Framework
TIPPICANOE - Measures the quality of the auditor
Training and proficiency Independent Professional care Planning and supervision Internal control Corroborative audit evidence Accounting principals according to GAAP - explicit No new principles - consistency - implicit Omitted disclosures - none - implicit Express an opinion - explicit
CARES - Auditors need to be independent for the following
Compilations Agreed-upon-procedures Reviews Examination Special reports
RID-C - Questions to ask the predecessor auditor
Reasons for the change
Integrity of Management
Disagreements during the audit
Communication with management or those charged with governance
DISAPPROVE - Matters that need to be communicated to those charged with governance
Disagreements with management Illegal acts - noncompliance w/ applicable laws and regulations Significant accounting policies Adjustments Prior discussions with management Problems Responsibilities Other information Views of other accountants Estimates
FACSIMILLE - Elements of an engagement letter
Fees Auditor’s responsibility Confirmation of engagement Scope & objective of engagement SInternal control Management’s responsibility Irregularities - Fraud iLlegal acts - noncompliance w/applicable laws and regulations Errors
BRAINSTOPS - Steps in planning an audit
Basic discussion w/ the client Review of PY documentation Ask about recent developments Interim financial statements Non-audit personnel Staffing Timing Outside assistance Pronouncements Scheduling with client
HEAL ME - Quality Control
Human Resources Ethical Requirements Accept & continuance of client relations Leadership responsibilities for quality within the firm Monitoring Engagement performance
CRAFT - How AP should be used
Client vs Industry
Related Accounts
Actual vs Budget
Financial vs Non-Financial
AIIO - Risk Assessment Procedures
Analytical Procedures
Inquiry
Inspection
Observation
ODA PReD - Steps taken to understanding I/C
Obtain an understanding of the design of I/C (CRIME) (AIIO) Document the understanding of I/C (FIND) Assess RMM Perform TOC (RIIO) Reassess RMM Document
CRIME - 5 Components of I/C
Control Environment (CHOPPER) Risk Assessment Control Activities (PIPS - ARCC) Information and Communication Monitoring
CHOPPER - Control Environment
Commitment to competence
Human resources policies and practice
Organizational structure
Participant of those charged with governance
Philosophy of management & operating style
Ethical values and integrity
Responsibility assignment
PIPS and ARCCS - Control Activities
Performance reviews - actual vs budget Information processing - general vs application controls Physical controls Segregation of Duties Authorization Recording Custody Comparison
FIND - Documentation of understanding of IC
Flow-Chart
ICQ
Narrative or memorandum
Decision table/tree
RIIO - Test of Controls
Reperformance
Inspection
Inquiry
Observation
P-Squared TC
Personnel / HR (authorize) Hire Fire Salary Rate Payroll (Recording) Calculate Pay Treaurer (Custody) Signs and distributes checks Custody of Cash Controller (Comparison) Bank Rec
ACE - Objectives of Internal Control
Accurate & Reliable financial reporting
Compliance w/ laws and regulations
Effectiveness and efficiency of operations
Management Assertions - PERCV OCCCA OCCA
PERCV - Test Assertions on Account Balances Presentation & Disclosure Existence Rights & Obligation Completeness Valuation & Allocation OCCCA - Test Assertions on Transactions Occurance Cutoff Classifcation Completeness Accuracy OCCA - Test Assertions on Disclosures Occurance Classification Completeness Accuracy
ICORRIIA - Audit Procedures
Inquiry Confirmation Observation Recalculation Reperformance Inspection of tangible assets Inspection (Examination) of records + documents AP
CARD - Elements of compliation report
Compiled AICPA Responsibility of Mgmt Disclaim an opinion *each page says "see accounts compliation"
FAMILIAR - Elements of a reveiw
F/S being reviewd AICPA standards managment respons inquiry and AP less than scope than audit incapable of opion assurance refer to us principal
