Whole Book Mnemonics Flashcards
Relationship between shareholders and directors/management?
ASA
Advantages of statutory audit?
SAS LCD
Definition of assurance engagement?
P E^2 S^2 C I (PEPSI)
Elements of assurance engagement
CREST
Define non-assurance engagement
CREST
if any of the above element is missing then it is called non-assurance engagement.
Why absolute assurance cannot be provided / What are inherent limitations of audit?
NPN LST
Define applicable financial reporting framework (AFRF)
L NPN
Responsibilities of management and TCWG
DP PAIR
Overall objectives / responsibilities of auditor / audit
FCA
Deifne professional judjment
CAKE T
Define professional skepticism
QCA
Acceptance and continuance procedures / Factors to be considered before acceptance of audit
CRIME (Check the company not involving in crime HAHAHAHA)
Auditor’s procedures after accepting client/engagement
SEC.
(in one second auditor perform the procedures after accepting client/engagement)
Procedures by incoming auditor
PRISON
Procedures by outgoing auditor
PINCH
Statutory rights of auditor
GARIB
G~~> (RAS)
I~~~> (SOAPED)
Statutory duties of auditor
SIDE ZIP
Disqualification criteria of statutory auditor
PF BIRDCAGE (Pakistan Force birdcage)
Fundamental principles of ethics
POPCI
Integrity
BAD FONTS OR BTS DA FON
Objectivity
PUS on CUB OR BUS on CUP
Confidentiality principle
I FEDUP PSX
Exceptions of confidentiality principle
LRA
L~~> DPN
R~~> RIP^2
Factors consider when disclosing confidential information
IPS HR (IPS Officer in HR Department)
Professional competence
MASKED IAS EAT (Officer Eat With Manners)
Professional behaviour
CARD LAP (Manners to play card on lap that are manners)
Identify threats
S SAFI
Evaluating threats / Significance of threats
GREED CUM
Addressing threats
SDC
Relationship between professional skepticism and fundamental principles
IPO (Initial public offering)
How auditor establishes whether preconditions for audit are present / exist?
PF AIR
Auditors response or course of action if any of preconditions for audit is not present
PM
Contents of engagement letter
FOR^3 & ROSE WIFI APP
Circumstances leading to change in terms of audit engagement
SMC
What are the circumstances if they change, then auditor send engagement letter on recurring audit?
MOM & FR To BR
Management wants to change the Engagement, what procedures are performed by the auditor if change is reasonable and auditor accepts the change?
PRA
