Becker Notes (Mnemonics and Ratios) Flashcards
MR DIM REPPORTS CRAME
(Unmodified Audit Opinion )
Managaments
Responsibility
Design
Implementation
Maintanence
Responsiblity
Express
Plan
Performing
Obtain
risks
Internal Control (Test)
Statements
Control
Reasonableness
Accounting
Management
Evaluating
ADMITS FINE
Going Concern should be obtained using the following procedures
Analytical Procedures
Debt Compliance
Minutes
Inquiry
Third Parties
Subsequent Events
Financial Difficulties
Internal Matters
Negative Trends
External Matters
DORCS
Disclose the reasons in an emphasis-of-matter or
other-matter paragraph
Date of the auditor’s previous report
Opinion type previously issued
Reasons for the prior opinion
Changes that have occurred
Statement that the “opinion_ is different.”
PRIME
Procedures to perform for Subsequent Events
Post balance sheet transactions
Representation letter should be obtained from mgnt
Inquiry
Minutes of stockholders should be read
Examine latest available interim financial statements; compare with FS under audit
STAFF
Understanding of Client’s Business
Staff qualifications
Transaction types and frequency
Accounting basis used to prepare the FS
Form of the accounting records
Financial statements form and content
CAR MR ARSOM
Reporting on a Compilation
Intro
Compiled
Reviewed or Audited (not)
Management Responsibility
Accountant’s Responsibility
SSARS issued by the AICPA
Objective of a compilation is to assist
Management
U LIAR CPA
Performance requirements applicable to a review
Same for review of interim financial reporting
Understanding with client
Learn and/or obtain knowledge
Inquiries should be addressed
Analytical Procedures performed
Review - other procedures
Client representation Letter
Professional judgement
Accountant communicate results
AMISAD MRFIR SALA
Reporting on a Review
Intro
Analytical Procedures
Management’s financial data
Inquiries
Substantially less in scope
Audit
Does not express
Management’s Responsibility
Financial Statements - fair rep
Internal control - maintaining
Responsibility (Accountant’s )
SSARS - accordance
AICPA - issued
Limited Assurance
TIPPY PASSER
Eleven Attestation Standards
Five General Standards
Training and proficiency
Independence
Performance/due professional care
Professional, adequate knowledge
Your believe professional judgement
Two fieldwork standards
Planning and supervision
Appropriate, sufficient evidence
Four reporting standards
Subject matter or the assertionbeing reported
Significant reservations about the engagement
Express conclusions
Restrict use of the report to specific parties
I AM SURE
Conditions are meet for Agreed-upon procedures
Independence of the practitioner
Agreement of the parties
Measurability and consistency
Sufficiency of the procedures
Use of the Report is Restricted to specific parties
Responsibility of the subject matter
Engagements to perform agreed-upon procedures on prospective fs
COVER U
Six Main fs Assertions
Completeness
cutOff
Valuation, Allocation, and Accuracy
Existence and Occurrence
Rights and Obligations
Understandability and Classification
CEO APROVED
PCAOB Assertions
Completeness
Existence
Occurance
Allocation
Presentation
Rightes
Obligations
Valuation
E
Disclosure
CRIME
Five components of internal Control
Control Environment: the overall tone of the org
Risk Assessment: management’s ID of risk
Information and Communication Systems: means of recording transactions and communicating responsibilities
Monitoring: assessment of IC performance over time
Existing Control Activities: control policies and procedures
PAID TIPS
Control activities relevant to an audit
Prenumbering of Documents
Authorization of Transactions
Independent Checks to Maintain Asset Accountability
Documentation
Timely and Appropriate Performance Reviews
Information Processing Controls
Physical controls for safeguarding assets
Segregation of duties
ARC
Segregation of duties
Authirzation
Record Keeping
Custody of related assets
