Week 2 - Engagement - Pre-conditions Mnemonic Flashcards
1
Q
What is the mnemonic for preconditions?
A
RAMRAID
2
Q
What does the first R stand for?
A
Resources - have you got the resources to carry out the work e.g staff, expertise, money
3
Q
What does the first A stand for?
A
Availability - available to do the work when needed e.g availability due to clients
4
Q
What does the M stand for?
A
Money laundering
5
Q
What does the second R stand for?
A
Risks - audit risk, engagement risks
6
Q
What does the second A stand for?
A
previous Auditor
7
Q
What does the I stand for?
A
Independence - no conflict of interest with competitors / does member of team have shares in the client
8
Q
What does the D stand for?
A
Due to make a profit? - not there to be a charitable service - raises suspicion of independence
