Mnemonics

Question 1

MR DIM REPPORTS CRAME

Answer 1

M management
R Responsibility
D design
I implement
M maintain IC

R auditors responsibility
E is to express an opinion on FS
audit conducted at GAAS
P standards require cpa to Plan and perform audit to obtain reasonable assurance FS free of error/fraud
P audit involves Performing procedures
O to Obtain evidence about amounts and disclosures
R procedures selected depend on cpa’s judgment, including Risk of mm
T consider internal control (Test) relevant to prep and fair presentation
S of financial Statements
C but not for purpose of expressing opinion on effectiveness of Controls
R audit includes evaluating appropriateness of acct policies and Reasonableness
A of significant Accounting estimates
M made by Management
E as well as Evaluating overall presentation of fs