ACCA COVER for Audit Assertions

A = Accuracy
C = Completeness
C = Classification
A = Allocation
C = Cut off
O = Occurrence
V = Valuation
E = Existence
R = Rights & Obligations

Classification of assertions: Transactions , Accounts, Presentation &

Disclosures (T A P)

1. Transactions: ACCA CO (to remember it is ACCA Company)

Authorization all transactions were properly authorized
Cutoff the transactions have been recorded in the correct accounting
period
Classification the transactions have been recorded in the proper
accounts
Accuracy the transactions were recorded at the appropriate amounts
Completeness all transactions that should have been recorded have
been recorded
Occurrence the transactions actually took place
2. Accounts: RECV (short form of Receiving)
Rights and Obligations the entity holds or controls the rights to its assets
and owes obligations to its liabilities
Existence assets, liabilities and equity balances exist
Completeness all assets, liabilities and equity balances that should have
been recorded have been recorded.
Valuation and Allocation assets, liabilities and equity balances are
included in the financial statements at appropriate amounts and any
resulting valuation or allocation adjustments are appropriately recorded.

3. Presentation and disclosure: ( CAR CO) ie CAR Company

Classification and Understandability financial statements are
appropriately presented and described, and information in disclosures are
clearly expressed.
Accuracy and Valuation financial and other information is disclosed fairly
and at appropriate amounts.
Rights and Obligations the transactions pertained to the entity
Completeness all disclosures that should have been included in the
financial statements have been included
Occurrence the transactions have occurred

PRADA Mnemonic for Audit Opinion Implication

P- Proper accounting records have been kept

R- all returns adequate to the audit have been received
from branches not visited
A- all explanations and information have been received
from the officers
D- Directors report is consistent with the FS and directors
remuneration. And all other benefits have been properly
disclosed
A- Accounting records are consistent with the FS

SPAM SOAP Internal Controls

S Segregation of duties
P physical controls
A authorization and approval
M management controls
S supervisory controls
O organization as a control
A arithmetical and accounting controls
P personnel controls

INSIDE A CRAB UK Combined code

I=Internal audit essential 4 listed co.
N=Nomination committee subcommittee of main board
S=Shareholders
I=Internal controls sound system of internal controls
(Turnbull)
D=Disclosure of compliance and non compliance
E=Effective board through continuous training, regular
meetings
A=Audit committee main
C=Chairman & CEO roles distinguished separately
R=Remuneration committee made up of @ least 3 NEDs
A=Accounting
B-Balanced Board between exec & non exec directors

ACCAMAPS
A= Authorization
C= Comparison
C= Computer Controls
A= Arithmetic Controls
M= Maintaining a trial balance & Control
A =Accounting & Reconciliations
P =Physical Controls
S=Segregation of duties

MARKSAT for steps in an audit plan/ strategy:

M=Materiality Levels
A=Analytic Procedures- Ratios
R=Risk (Audit)-Ir X Cr X Dr
K=Knowledge of Business
S=Staffing- Number and Skills Required.
A=Audit Approach- Procedural or Risk Based
T=Timing- After Year End.

FAT SIS threats to auditors independence

F=Financial
A=Advocacy
T=Threats
S=Self Review
I=Intimidation
S=Self Interest

Matters to consider in Appointments FOC IRR

F = Fees
O= Others services
C = Competence & Due Care
I = Independence
R = Resources
R = Risk

Understanding a Business INOM

I information System
N Nature of Business
O Objective/Strategies/Risk
M Measuring Performance

Evaluation of Tender- FPPP

F= Fee
P= Professionalism
P= Proposed approach
P= Personal service

Contents of Tender WW ROCE

Who we R: History, portfolio, group structure, Senior
profile
What we Offer: Services etc.
What we Charge: quote fee exactly.
What we Expect: Client Responsibility.

Facts that auditor has to consider before acceptance:

LIST
Logistics: deadline of AGM, location, staff availability,
clients management (risk attached with client).
Information Tech: Software, ERP (used by client)
Subsidiary Report: What kind of reports required.
Timings: Timing of procedures, test of control and
Substantive Procedure.

Matters to Consider before accepting PFI PINED

Period covered by the PFI
Intended user
Nature of assumption
Element of PFI
Distributaries