Mnemonics Flashcards
1
Q
Corporate governance?
A
Board leadership and company purpose Division of responsibilities Composition, succession and evolution Audit, risk and internal control Remuneration
BD CAR
2
Q
Internal control components
A
Control activities Risk assessment process Information systems Monitoring of activities Environment
CRIME
3
Q
Control activities
A
Authorisation controls Physical Information processing ITGC/App Performance review Segregation of duties
4
Q
Limitations of internal controls?
A
Relevancy/obsolescence Cost Collusion Human error Unusual/infrequent transactions Management override
RC CHUM
5
Q
IT general controls
A
Access to programs and date
Program changes and development
Operations (computer)
Continuity
6
Q
To consider when making program changes
A
Development
Authorisation
Testing
Approval
7
Q
Key elements of internal audit
A
Independent Measures and evaluates Within organisation Integral part of controls Service to all levels Effectiveness and Efficiency
IM WISE
8
Q
Effectiveness of internal audit
A
Process Audit committee Resource and competence Independence Status and position Standards
PARISS
9
Q
Element of an assurance engagement
A
Criteria Underlying subject matter Three party relationship Evidence Report
CUTER
10
Q
Matters reported by exception
A
Returns received from branches Accounts agree with records Proper accounting records Info and evaluations received Directors emoluments disclosed
RAPID
11
Q
ICAS code of ethics
A
Confidentiality Objectivity Professional competence and due care Integrity Professional behaviour
COPIP
12
Q
Objectivity threats
A
Management Advocacy Self review Self interest Intimidation Familiarity
MASSIF
13
Q
Understand the entity
A
Nature Accounting policies Objectives Measurement Industry Internal control
14
Q
Inherent risk assessment techniques
A
Analytical review
Enquiry
Inspection
Observation
15
Q
Substantive testing techniques
A
Inspection Confirmation Analytical procedures Recalculation Enquiry
16
Q
Audit strategy memorandum
A
Background client info Systems and control info Staffing Materiality Analytical procedures risk Risk assessment findings Timetable
B SSMART
17
Q
Transactions assertions
A
Occurrence Classification Cut off Completeness Accuracy
Presentation
18
Q
Balance sheet assertions
A
Completeness Rights and obligations AVA Classification Existence
