AAf8 mnemonics helpful for exams

Financial statements assertions ACCA COVER Accuracy Completeness Cut off Allocation Classification and understandibility Occurence Valuation Existance Rights and obligations

Sources of evidence AEIOU Analytical procedures Enquiry and confirmation Inspection Observation recalcUlation and reperformance Ethics - fundamental principles OPPIC Objectivity Professional behaviour Professional competence Integrity Confidentiality

Ethics - threats ASSIF Advocacy Self-interest Self-review Intimidation Familiarity Ethics - indicators of threats FULL STOP Friends and family Undue fee dependence Loans to/from Litigation Shares in client Taking gifts and hospitality Overdue fees Provision to the other services Corporate governance - concepts HAIR DRIFT Honesty / probity Accountability Independence Responsibility Decision taking / judgement Reputation Integrity Fairness Transparency / openness

Stakeholders - anyone or any group PINK LAVR Primary or secondly Internal or external Narrow or wide Known or unknown Legitimate or illegitimate Active or passive Voluntary or involuntary Recognized or recognized

Financial statements assertions ACCA COVER Accuracy Completeness Cut off Allocation Classification and understandibility Occurence Valuation Existance Rights and obligations Sources of evidence AEIOU Analytical procedures Enquiry and confirmation Inspection Observation recalcUlation and reperformance Ethics - fundamental principles OPPIC Objectivity Professional behaviour Professional competence Integrity Confidentiality Ethics - threats ASSIF Advocacy Self-interest Self-review Intimidation Familiarity Ethics - indicators of threats FULL STOP Friends and family Undue fee dependence Loans to/from Litigation Shares in client Taking gifts and hospitality Overdue fees Provision to the other services Corporate governance - concepts HAIR DRIFT Honesty / probity Accountability Independence Responsibility Decision taking / judgement Reputation Integrity Fairness Transparency / openness Stakeholders - anyone or any group PINK LAVR Primary or secondly Internal or external Narrow or wide Known or unknown Legitimate or illegitimate Active or passive Voluntary or involuntary Recognised or unrecognised Internal controls - categorisation OPA SPAMS or SPAM SOAP Organisational Physical Arithmetic and Accounting Segregation of duties Personnel Authorisation and approval Management Supervision Audit committee - role and function CLARISSA Create a climate of discipline and control Lend credibility in financial statements Assist CFO providing a forum Review financial statements to improve quality Independent judgement Strengthen position of the internal auditor Strengthen position of the external auditor Assist in the resolution of disputes between external auditor and the board Control objectives A STOP Accuracy Safeguarding asset Timing reporting Orderly efficient business conduct Prevention fraud or non-compliance of law Control procedures CARCAP Comparison Authorisation Reconciliations Computer controls Arithmetical Physical Evaluation of expert's work CCO Competent ? Capable ? Objective?

FINANCIAL STATEMENTS ASSERTIONS:- ACCA COVER Accuracy Completeness Cut off Allocation Classification and understandibility Occurence Valuation Existance Rights and Obligations SOURCES OF EVIDENCE: AEIOU Analytical Procedures Enquiry and Confirmation Inspection Observation recalcUlation and performance ETHICS - FUNDAMENTAL PRINCIPLES :- OPPIC Objectivity Professional Behaviour Professional competence Integrity Confidentiality ETHICS - THREATS :- ASSIF Advocacy Self interest Self review Intimidation Familiarity ETHICS - INDICATORS OF THREATS:- FULL STOP Friends and family Undue fee dependence Loans to/from Litigation Shares in clients Taking gifts and hospitality Overdue fees Provision to the other services CORPORATE GOVERNMENT- CONCEPTS:- HAIR DRIFT Honesty/probity Accountability Independence Responsibility Decision taking / judgement Reputation Integrity Fairness Transparency / openness STAKEHOLDERS - ANYONE OR ANY GROUP:- PINK LAVR Primary or secondary Internal or external Narrow or wide Known or unknown Legitimate or illegitimate Active or passive Voluntary or involuntary Recognized or unrecognized INTERNAL CONTROL - CATEGORIZATION:- OPA SPAMS / SPAM SOAP Organizational Physical Arithmetic and accounting Segregation of duties Personnel Authorization and approval Management Supervision AUDIT COMMITTEE - ROLE AND FUNCTION:- CLARISSA Create a climate of discipline and control Lend credibility in financial statements Assist CFO by providing a forum Review financial statements to improve quality Independent judgement Strengthen the position of the internal auditor Strengthen the position of the external auditor Assist in the resolution of disputes between external auditor and the board

Internal controls - categorisation OPA SPAMS or SPAM SOAP Organisational Physical Arithmetic and Accounting Segregation of duties Personnel Authorisation and approval Management Supervision Audit committee - role and function CLARISSA Creat a climate of discipline and control Lend credibility in financial statements Assist CFO in providing a forum Review financial statements to improve quality Independent judgement Strengthen position of the internal auditor Strengthen position of the external auditor Assist in the resolution of dispites between external auditor and the board

Internal controls - categorisation OPA SPAMS or SPAM SOAP Organisational Physical Arithmetic and Accounting Segregation of duties Personnel Authorisation and approval Management Supervision

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Internal Controls Components-CRIME Control activities Risk assessment Information system Monitoring of controls Environment control

These are the procedures performed to obtain audit evidence. Sources of evidence could be accounting records(invoices,bank statements,receipts),personnel,financial statements,minutes of the board/management,