Mnemonics

Question 1

10 Generally Accepted Auditing Standards (GAAS)

Answer 1

TIPPICANOE
GENERAL STANDARDS
Training & proficiency
Independence
Professional care (due)
FIELDWORK STANDARDS
Planning & supervision
Internal Control
Corroborative audit evidence ( substantive testing)
STANDARDS OF REPORTING
Accounting principles in conformity w/ GAAP
No new accounting principles applied - consistancy
Omitted informative disclosures - none
Expression of an opinion

Question 2

Attestation Engagements where Auditor must maintain Independence

Answer 2

CARES
   Compilations (unless lack of independence)
   Agreed-upon procedures
   Reviews
   Examinations (audits)
   Special reports

Question 3

Inquiries of Predecessor Auditor

Answer 3

RID-C
   Reasons for change
   Integrity of management
   Disagreements during audit
   Communication w/Mgmt. or Gov.

Question 4

Matters communicated to those charged with Governance

Answer 4

DISAPPROVE
Disagreements w/ mgmt
Illegal acts - noncompliance w/laws & regulations
Significant accounting policies
Adjustments (AJE & RJE)
Prior discussions with management
Problems arising during audit
Responsibilities of auditor
Other information - regarding responsibilities
Views of other accountants - contacted by mgmt
Estimates - in accounting records

Question 5

Elements of the Engagement Letter

Answer 5

FACSIMILE
   Fees
   Auditor's responsibility (GAAS)
   Confirmation of engagement
   Scope & objective of engagement
   Internal control
   Management responsibility

Irregularities
iLlegal acts
Errors

Question 6

Audit Planning

Answer 6

BRAINSTOPS
   Basic discussions with the client
   Review of audit documentation
   Ask about recent developments
   Interim financial statements
   Non-audit personnel
   Staffing
   Timing
   Outside assistance
   Pronouncements
   Scheduling with the client

Question 7

Elements of Quality Control

Answer 7

HEAL-ME
Human resources (personnel management)
Ethical requirements (Independence)
Acceptance and continuance of client relationships and specific engagements
Leadership responsibilities for quality within the firm
Monitoring
Engagement performance