Internal Control Nemonics Flashcards
What are the control activities?
PIPS
Performance Reviews
Information Processing
Physical Controls
Segregation of Duties
What are the five components of internal control?
CRIME
Control Environment
Risk Assessment
Control Activities
Information and Communication
Monitoring
How do you test controls (Tests of ARCC)
RIIO
Reperformance
Inspection
Inquiry
Observation
What are the inherent limitations of controls?
Can still happen if internal controls are strong
COCO
Collusion
Override by management
Competence/Human error
Obsolescence
What types of questions doe the Internal Control Questionnaire (ICQ) cover?
PRAISE
Physical Controls
Recording
Authorization
Independent Checks
Segregation of Duties
Evaluate Performance
What is ARCC
Authorization
Recording
Custody
Comparison
What are the common techniques for documenting the understanding of Internal Control?
FIND
Flow Charts
ICQ
Narrative of Memorandum
Decision Tabel/Tree
What matters should be communicated to those charged with governance during the audit?
Disagreements with management
Illegal Acts (Noncompliance with laws and regulations, including illegal acts)
Significant accounting policies; adopted or changed by management
Adjustments; proposed by auditor with a significant impact on financial records
Prior discussions with management; before acceptance of engagement
Problems arising during the audit in obtaining evidence
Other information regarding responsibilities
Views of other accountants; who were contacted by management on significant matters
Estimates; in the accounting records and the process used to obtain them.
