RogerCPA Audit

Question 1

CRIME (Internal Control)

Answer 1

In the order these flow:
5 Control Environment
2 Risk Assessment
1 Control Activities
3 Information and Communication
4 Monitoring

Question 2

PIPS (Control Environment)

Answer 2

Performance reviews
Information processing
Physical controls
Segregation of duties

Question 3

ARCC (Control Activities)

Answer 3

There should be segregation between
Authorization
Recording
Custody
Comparison, reconciliation

Question 4

CHOPPER (Control Environment)

Answer 4

Commitment to competency
Human resource policies and procedures
Organizational structure and chart (clearly defined)
Participation of management, governance and internal audit
Philosophy and operating style
Ethics and integrity
Responsibility (Assigning authority)

Question 5

the steps to understand Internal control

Answer 5

PDATED is my mnemonic. U-P-D-A-T-E-D
understand the design of the policies and procedures
document it
assess control risk
test of controls
reassess and then
document your conclusion or you can just remember it but that’s your UPDATED. - See more at: https://www.rogercpareview.com/learning-center/learn-why-internal-control-crime#sthash.IGYMjm02.dpuf

Question 6

Management Assertions

Answer 6

Presented (Adequately Disclosed, Understatability)
Exist
Rights (Ownership)
Classification/Cutoff/Completeness
Valuation (allocation, accuracy)
(Basic Types of Audits)

Question 7

Measure of the Quality of the Auditor’s Work

Answer 7

(General Standards)
Trained
Independent (Individual Client versus for all the Clients)
Prepared (Acting with Skill)
(Standards of Fieldwork)
Planning
Internal Control
Corroborative Evidence
(Standards of Reporting)
Accordance
No New Principle
Observant
Expressing an Opinion
(For Each Engagement)
(AUD Quality Control)

Question 8

SQCS’s (Statements on Quality Control Standards)

Answer 8

Human resources (personnel - training)
Ethical Standards
Act with Independence, Adequate Standards for Independence
Leadership (tone at the top)
Monitoring
Engagement Performance (adhering to all the Standards of Quality Control Standards
(AUD Quality Control)

Question 9

Objectives of Internal Control

Answer 9

Accurate, Reliable, GAAP
Compliance with Laws and Regulations
Efficiency of Operations
('In the hole')
(AUD Objectives and Components)

Question 10

Planning Procedures

Answer 10

Basic discussions with the client
Review of audit documentation
Ask about recent developments/Analytical procedures (i.e., mergers)
Interim Information (i.e., quarterly/10k/10q/8k 1933/34 SEC acts)
Non-audit personnel (talk to)
Stay within budget
Timing
Outside assistance (specialist)
Pronouncements
Scheduling with the client
(10 Steps for Planning an Audit)

Question 11

Controls for Checks/Documents/Revenue Cycle)

Answer 11

Preprinted
Prenumbered
Numerically controlled
&
Multiple Copies
(Internal Control Revenue Cycle 2)

Question 12

Detection Risk

Answer 12

DR=AR/(IR*CR) or DR=AR/RMM

Audit Risk, Financial Statement Level and Assertion - Lesson 1

Question 13

Comparisons for ratio analysis?

Answer 13

comparisons for ratio analysis
Client versus industry
Related accounts
Actual versus budget
Financial versus nonfinacial
Time/Current year versus prior year