Mnemonics

Question 1

O3I = Basic ethical characteristics and professional qualities.

Answer 1

O = Objectivity.
I = Independence. 
I = Integrity. 
I = Impartiality.

Question 2

MECCO = Auditors responsibilities.

Answer 2

M = Maintaining professional skepticism.
E = Excersing professional judgement through planning and performance of audit. 
C = Complying with relevant ethical requirements.
C = Complying with GAAS.
O = Obtaining sufficient appropriate audit evidence.

Question 3

EPIDO = Steps to obtain reasonable assurance.

Answer 3

E = Expressing an opinion on FS based on the audit. 
P = Plan the work and properly supervise assistants. 
I = Identify and assess risks of material misstatement whether due to fraud or error. 
D = Determine and apply appropriate materiality levels. 
O = Obtain sufficient appropriate audit evidence.

Question 4

PAD = CAM info that should be included in the auditor’s report.

Answer 4

P = Principal factors that led the auditor to determine that this was a CAM.
A = How the CAM was Addressed.
D = Reference to relevant FS accounts and disclosures.

Question 5

TAABSKMAOOSAD = Parts and Order of Auditor’s Report

Tutankamón

Answer 5

T = Title
A = Addressee
A = Auditor's Opinion
B = Basis for Opinion
S = Substantial Doubt About Going Concern.
K = Key Audit Matters.
M = Management Responsibilities. 
A = Auditor's Responsibilities.
O = Other Info. 
O = Other Reporting Responsibilities. 
SAD = Signature, Address and Date.

Question 6

PRIME = Auditor’s Responsibilities for Subsequent Events.

Answer 6

P = Post BS Transactions.
R = Representation Letter. 
I = Inquiry (lawsuits, claims, etc).
M = Minutes of meetings. 
E = Examine latest interim FS.

Question 7

DROCO - Responsibilities of a previous auditor when deciding to reissue their prior report.

Answer 7

D = Date the report as appropriate (dual dated or unrevised).
R = Read the CY report. 
O = Obtain a letter of representation of new auditor. 
C = Compare CY to PY. 
O = Obtain a letter of representation from client's management at the date of reissuance.

Question 8

HELPME = Elements of Quality Control.

Answer 8

H = Human Resources.
E = Engagement/client acceptance.
L = Leadership responsibilities.
P = Performance of the Engagement.
M = Monitoring.
E = Ethical Requirements.

Question 9

RORRIS = REQUIRED contents of the engagement letter.

Answer 9

R = Reference to the expected form and content of any reports, and that these may be subject to change.
O = Objective and scope of the audit.
R = Responsibilities of the auditor.
R = Responsibilities of management.
I = Identification of financial framework.
S = State that there is unavoidable risk that some material misstatements may not be detected.

Question 10

COVERUP = 6 main financial assertions.

Answer 10

C = Completeness.
O = CutOff
V = Valuation, allocation and accuracy.
E = Existence and Occurrence. 
R = Rights and Obligations. 
U = Understandability of....
P = Presentation and Classification.

Question 11

CRIME = 5 components of Internal Control.

Answer 11

C = Control Environment.
R = Risk Assessment.
I = Information and Communication Systems.
M = Monitoring. 
E = Existing Control Activities.

Question 12

PAID TIPS = Control activities in a strong system of internal control.

Answer 12

P = Pre-numbering of docs.
A = Authorization of Transactions.
I = Independent checks to maintain asset accountability.
D = Documentation.
T = Timely and appropriate financial performance reviews.
I = Information Processing Controls
P = Physical controls for Safeguarding Assets.
S = Segregation of Duties.

Question 13

MCCHAPO = 7 Control Environment Factors.

Answer 13

M = Management's philosophy and operating style.
C = Communication and enforcement of integrity and ethical values.
C = Commitment to competence. 
H = HR policies & practices.
A = Assignment of authority. 
P = Participation of those charged with governance. 
O = Org structure.

Question 14

HTM = Hija de Tu Madre = Obtaining an understanding of an entity’s information and communication system.

Answer 14

To understand:
H = How transactions are initiated, processed, reported.
T = The financial reporting process.
M = Means used by an entity to communicate financial reporting roles and responsibilities.

Question 15

POA = 3 Risk Factors.

Answer 15

P = Pressures/Incentives.
O = Opportunity.
A = Attitude/Rationalization.

Question 16

CECH = 4 factors of high inherent risk.

Answer 16

C = Complex Calculations.
E = Estimates.
C = Cash.
H = High-volume transactions.

Question 17

NET = 3 elements of Substantive Tests.

Answer 17

N = Nature.
E = Extent.
T = Timing.

Question 18

RORI = procedures used to test operating effectiveness of internal controls

Answer 18

R = Recalculation.
O = Observation.
R = Reperformance. 
I = Inquiry.

Question 19

FINE = Factors that may indicate substantial doubt about an entity’s ability to continue as a going concern

Answer 19

F = Financial difficulties.
I = Internal matters.
N = Negative trends.
E = External mattters.

Question 20

FARMPC = SSAE Attestation Services

Answer 20

F = Forecast.
A = Agreed-upon procedures. 
R = Reporting on controls.
M = MD&A.
P = ProForma FS.
C = Compliance.

Question 21

I AM SURE = Conditions for AUP

Answer 21

I = Independence.
A = Agreement of the parties. 
M = Measurability and consistency. 
S = Sufficiency of the procedures.
U = Use of the report: Gral or certain ppl.
R = Responsibility of the subj matter.
E = Engagements to perform AUP on prospective FS.