Whole Book Mnemonics

Question 1

Relationship between shareholders and directors/management?

Answer 1

ASA

Question 2

Advantages of statutory audit?

Answer 2

SAS LCD

Question 3

Definition of assurance engagement?

Answer 3

P E^2 S^2 C I (PEPSI)

Question 4

Elements of assurance engagement

Answer 4

CREST

Question 5

Define non-assurance engagement

Answer 5

CREST

if any of the above element is missing then it is called non-assurance engagement.

Question 6

Why absolute assurance cannot be provided / What are inherent limitations of audit?

Answer 6

NPN LST

Question 7

Define applicable financial reporting framework (AFRF)

Answer 7

L NPN

Question 8

Responsibilities of management and TCWG

Answer 8

DP PAIR

Question 9

Overall objectives / responsibilities of auditor / audit

Answer 9

FCA

Question 10

Deifne professional judjment

Answer 10

CAKE T

Question 11

Define professional skepticism

Answer 11

QCA

Question 12

Acceptance and continuance procedures / Factors to be considered before acceptance of audit

Answer 12

CRIME (Check the company not involving in crime HAHAHAHA)

Question 13

Auditor’s procedures after accepting client/engagement

Answer 13

SEC.
(in one second auditor perform the procedures after accepting client/engagement)

Question 14

Procedures by incoming auditor

Answer 14

PRISON

Question 15

Procedures by outgoing auditor

Answer 15

PINCH

Question 16

Statutory rights of auditor

Answer 16

GARIB

G~~> (RAS)

I~~~> (SOAPED)

Question 17

Statutory duties of auditor

Answer 17

SIDE ZIP

Question 18

Disqualification criteria of statutory auditor

Answer 18

PF BIRDCAGE (Pakistan Force birdcage)

Question 19

Fundamental principles of ethics

Answer 19

POPCI

Question 20

Integrity

Answer 20

BAD FONTS OR BTS DA FON

Question 21

Objectivity

Answer 21

PUS on CUB OR BUS on CUP

Question 22

Confidentiality principle

Answer 22

I FEDUP PSX

Question 23

Exceptions of confidentiality principle

Answer 23

LRA

L~~> DPN
R~~> RIP^2

Question 24

Factors consider when disclosing confidential information

Answer 24

IPS HR (IPS Officer in HR Department)

Question 25

Professional competence

Answer 25

MASKED IAS EAT (Officer Eat With Manners)

Question 26

Professional behaviour

Answer 26

CARD LAP (Manners to play card on lap that are manners)

Question 27

Identify threats

Answer 27

S SAFI

Question 28

Evaluating threats / Significance of threats

Answer 28

GREED CUM

Question 29

Addressing threats

Answer 29

SDC

Question 30

Relationship between professional skepticism and fundamental principles

Answer 30

IPO (Initial public offering)

Question 31

How auditor establishes whether preconditions for audit are present / exist?

Answer 31

PF AIR

Question 32

Auditors response or course of action if any of preconditions for audit is not present

Answer 32

PM

Question 33

Contents of engagement letter

Answer 33

FOR^3 & ROSE WIFI APP

Question 34

Circumstances leading to change in terms of audit engagement

Answer 34

SMC

Question 35

What are the circumstances if they change, then auditor send engagement letter on recurring audit?

Answer 35

MOM & FR To BR

Question 36

Management wants to change the Engagement, what procedures are performed by the auditor if change is reasonable and auditor accepts the change?

Answer 36

PRA