Week 2 - Engagement Preconditions Flashcards
(16 cards)
1
Q
How do you remember the engagement preconditions?
A
RAMRAID
2
Q
R (First)
A
Resources
3
Q
A (First)
A
Availability
4
Q
M
A
Money laundering
5
Q
R (Second)
A
Risks
6
Q
A (Second)
A
previous Auditors
7
Q
I
A
Independence
8
Q
D
A
Due to make a profit?
9
Q
Resources
A
Have we got the resources
10
Q
Availability
A
Are we available to do the work when it is needed
11
Q
Money laundering
A
Be aware of money laundering
12
Q
Risks
A
Consider audit and engagement risk
13
Q
previous Auditors
A
Check in with previous auditors
14
Q
Independence
A
Do we have a conflict of interest
15
Q
Due to make a profit
A
Ultimately here to make a profit - don’t want that to be compromised
16
Q
What could an example of independence be?
A
If a member in your team has shares in your client (interest in your client) - has to be replaced by someone else
