Mnemonics Flashcards
RODISIP = 7 principles of professional conduct of the AICPA code of conduct
R = Responsibility principle
O = Objectivity
D = Due care
I = Independence
S = Scope and Nature of services
I = Integrity
P = Public interest
CARE = Balance Sheet Assertions
C = Completeness
A = Allocation and valuation
R = Rights and obligations
E = Existence
COCCA = Income Statement Assertions
C = Completeness
O = Occurrence
C = Cutoff
C = Classification - proper account
A = Accuracy and valuation - proper amount.
O3I = Basic Ethical Characteristics and Professional Qualities
O = Objectivity
I = Independence
I = Integrity
I = Impartiality
MECCO = Auditors Responsibilities
M = Maintain professional skepticism
E = Exercising professional judgment through planning and performance audit
C = Complying with relevant ethical requirements.
C = Complying with GAAS
O = Obtaining sufficient appropriate audit evidence
EPIDO = Steps to obtain reasonable assurance
E = Expressing an opinion on F/S based on the audit
P = Plan the work and properly supervise assistants
I = Identify and assess risk of material misstatement whether due to fraud or error
D = Determine and apply appropriate materiality levels
O = Obtain sufficient appropriate audit evidence
PAD = CAM info that should be included in the auditor’s report
P = Principal factors that led the auditor to determine that this was a CAM
A = How the CAM was Addressed
D = Reference to relevant F/S accounts and Disclosures.
TAABSKMAOOSAD = Parts and Order of Auditor’s Report
Tutankamon
T = Title
A = Addressee
A = Auditor’s opinion
B = Basis for Opinion
S = Substantial doubt about going concern
K = Key Audit Matters
M = Management Responsibilities
A = Auditor’s responsibilities
O = Other info
O = Other Reporting Responsibilities
SAD = Signature, Address, and Date
PRIME = Auditor’s responsibilities for subsequent events
P = Post B/S transaction
R = Representation letter
I = Inquiry (lawsuits, claims, etc.)
M = Minutes of meetings
E = Examine latest interim F/S
DROCO = Responsibilities of a previous auditor when deciding to reissue their prior report.
D = Date the report as appropriate (dual dated or unrevised)
R = Read the CY report
O = Obtain a letter of representation of new auditor
C = Compare CY to PY
O = Obtain a letter of representation from client’s management at the date of reissuance.
HELPME = Elements of Quality Control
H = Human Resources
E = Engagement/Client acceptance
L = Leadership responsibility
P = Performance of the engagement
M = Monitoring
E = Ethical requirements
RORRIS = REQUIRED content of engagement letter
R = Reference to the expected form and content of any report, and that these may be subject to change
O = Objective and scope of the audit
R = Responsibilities of the auditor
R = Responsibilities of management
I = Identification of Financial Framework
S = State that there is unavoidable risk that some material misstatements may not be detected
COVERUP = 6 main financial assertions
C = Completeness
O = Cut Off
V = Valuation, allocation and accuracy
E = Existence and Occurrence
R = Rights and obligations
U = Understandability of …
P = Presentation and Classification
CRIME = 5 components of internal control
C = Control Environment
R = Risk Assessment
I = Information and communication systems
M = Monitoring
E = Existing control activities
PAID TIPS = Control activities in a strong system of internal controls
P = Pre-numbering docs
A = Authorization of transactions
I = Independent checks to maintain asset accountability
D = Documentation
T = Timely and financial performance reviews
I = Information processing controls
P = Physical controls for safeguarding assets
S = Segregation of duties
MCCHAPO = 7 Control Environment Factors
M = Management’s philosophy and operating style
C = Communication and enforcement of integrity and ethical values
C = Commitment to competence
H = HR policies and practices
A = Assignment of authority
P = Participation of those charged with governance
O = Org structure
HTM = Hija de Tu Made = Obtaining an understanding of an entity’s information and communication system
To understand:
H = How transaction are initiated, processed, reported
T = The financial reporting process
M = Means used by an entity to communicate financial reporting roles and responsibilities
POA = 3 Fraud Risk Factors
P = Pressures/incentives
O = Opportunity
A = Attitude/Rationalization
CECH = 4 factors of high inherent risk
C = Complex calculation
E = Estimates
C = Cash
H = High-volume transactions
NET = 3 elements of substantive testing
N = Nature
E = Extent
T = Timing
RORI = procedures used to test operating effectiveness of internal controls
R = Recalculation
O = Observation
R = Reperformance
I = Inquiry
FINE = Factors that may indicate substantial doubt about an entity’s ability to continue as a going concern
F = Financial difficulties
I = Internal matters
N = Negative trends
E = External matters
FARMPC = SSAE Attestation Services
F = Forecast
A = Agreed-upon procedures
R = Reporting on controls
M = MD&A
P = ProForma F/S
C = Compliance (examination or agreed-upon procedures only)
I AM SURE = Conditions for AUP
I = Independence
A = Agreement of the parties
M = Measurability and consistency
S = Sufficiency of the procedures
U = Use of the report: Gral or certain ppl
R = Responsibility of the subject matter.
E = Engagement to perform AUP on prospective F/S