mnemonics for p7 acca dec 2013

please can somebody forward me the mnemonics for P7, I am sitting the exam in Dec 2013. Much appreciated Valerie
my email is valerieclare@hotmail.co.uk. Thanks

For management assertions we already know that ACCA COVER
but further classifying them into 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

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

? CAIRO
C=confirmation
A=analytical procedures
I=inspection of assets/records
R=recalculation/reperformance
O=observation

? ASTOP for control objectives in general can use
A-Accuracy
S- Safeguarding asset
T-Timing Reporting
O- Orderly efficient business conduct
P- Prevention fraud or non compliance of law

? POPCI -fundamanetal principles
P-rofessional behaviour
O-bjectivity
P-rofessional competence and due care
C-onfidentiality
I-ntegrity

? PRADA Mnemonic for Audit Opinion Implication
P-roper 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- irectors report is consisent with the f/s and directors remun. and all other benefits hvae been properly disclosed
A-ccounting 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 comitee – sub commitee of main board
S=Shareholders
I=Internal controls – sound system of int controls (Turnbull)
D=Disclosure of compliance and non compliance
E=Effective board – through continuous training, regular meetings
A=Audit commitee – main
C=Chairman & Ceo roles distinguished seperatly
R=Remeneration commitee made up of @ least 3 NEDs
A=Accounting
B-Balanced Board – between exec & non exec directors

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

? PAIDSAP
P= Pre-numbering
A= Authorisation
I= Independent Checks
Documentation
S =Segregation of Duties
A =Analysis & Performance Analysis
P=Physical Control

? 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 auditor’s independence
F=Financial
A=Advocacy
T=Threats
S=Self Review
I=Intimidation
S=Self Interest

? A,E,I,O,U i.e. vowels (Audit Procedures)
A=Analytical procedures
E=Enquiry
I=Inspection
O=Observation
U= recalcUlation and reperformance

? CACSO Audit stages
C=Client acceptance/retention stage
A=Audit planning stage
C=Control testing stage*
S=Substantive testing stage
O=Opinion formulation stage
* only applicable where the audit approach includes reliance on one or more control procedures.

? PEEDO Audit Activities
P=Planning
E= Evidence gathering
E= Evidence evaluation
D= Decision making
O= Other activities (delegation, supervision and review- required continious throughout the audit engagement)

? Ethical Threats – SIA FS
S = Self Review
I = Intimidation
A = Advocacy
F = Familiarity
S = Self Interest Threats

? Matters to consider in Appointments – FOC IRR
F = Fees
O = Others services
C = Competence & Due Care
I = Independence
R = Resources
R = Risk

Audit Risk = IR x CR x DR
IR = Inherent Risk
CR = Control Risk
DR = Detection 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 mangt(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
Distrubutories

Good day, could any one please email me some mnemonics not already referred to above to ilseheymans7@gmail.com. Thanks in advance

Hey MIA,

Kindly forward for me the same if you have received anything in your email….will truly appreciate it..

Thanks,

Farish

Anyone willing to send me list as well.

Email: zlip.792@gmail.com

me too any one please send me an email of it through farish90.fa@gmail.com thank you

Factors for good Advertising of Audit Services – ABCDEF
A – Advertising need to take into account the following:
B -Back-up (e.g. : address, phone, website etc)
C -Criticize others (DON’T –e.g.: not use word “most professional”, “the best of…” etc)
D – Definitely clear (e.g. not use words like “competitive rate” without clear basis for comparison )
E – Ensure to comply with law (e.g. cannot use expression “we guarantee decrease of your tax payment!”)
F – Fundamental ethics (e.g. to be professional in placement of advertising, overall wording of adv etc)

Professional Appointment – Factors to consider: BECOME PRACTISE
B – Building-up knowledge (about Company, industry etc)
E – Expertise / Experts involvement
C – Control System of entity (ineffective => increased risk of incorrect FS)
O – Opening balance (if it is the first year client? Any modification of PY opinion?)
M – Management style (e.g. aggressive => indemnity threat)
E – Existing clients’ relationship + conflict of interest (if any)

P – Pressure on fees
R – Reputation of Client (e.g. criminal? Legal case against entity?
A – Advocacy threat (if any – who will rely/use our report?)
C – Competence + Confidence
T – Timeline/Deadline (=> effect on quality of work)
I – Integrity (trustable?)
S – Staff + resources (available? Sufficient? Specific skills required/enough?)
E – Easy? => overall risk association

Control Environment – DADA 3
D – Directors (Management)
A – Assets
D -Documents
A – Accounting System
3 – 3d (third) parties

Use of Experts – REQI SODIT
R – Reputation
E – Experience
Q – Qualification
I – Independence

S – Structure of team
O – Organizational structure
D – Due care and diligence
I – Independence
T – Competence

Related Party (RP) Transactions hard to identify due to – DADAC:
D – Definition of “Related Party” is difficult
A – Accounting System not separate this transactions
D – Directors not willing to disclose list of all RPs (or transactions with RPs)
A – Application of Materiality usually irrelevant (nature vs size,”zero/low-valued transactions”
C -Concealment by business (“windows dressing”)

Matters to consider in relation to identified misstatements: MRS “O”
M – Materiality
R – Risk Related
S – Standards (ISA and/or IAS)
O – Opinion?

5 elements of assurance engagement – S3 SER
S – Subject matter (e.g. Audit of FS? Review? Compliance with law?)
3 – 3 (three) parties involved: practitioner (auditor); responsible party (Management); users (shareholders/banks)
S – Standards/suitable criteria (ISA/IAS/ISRE/benchmarking)
E Evidence availability and sufficiency
R – Report written (=>positive/negative/no assurance)

Objectives of Forensic Investigation – HOPE
H – Happen fraud? (is it really fraud or just unintentional error?)
O – Obtain the list of (potential) perpetrators?
P – Prosecute of perpetrators?
E – Economic loss? (try to quantify)

Steps involved in Forensic Investigation – THEIR Expert Advice
T – Type of fraud? (e.g. “ghost employee”)
H – How it would have happened? (e.g. deficiency in internal control system)
E – Evidence?
I – Interview with suspect (gain a confession from him)
R – Report (summarize suspect + quantified economic loss)
Expert – Expert witness in the courts (if necessary)
Advice – Advice to Company on how to improve their Internal Control System in the future

please can somebody forward me the mnemonics for P7, I am sitting the exam in Dec 2015. Much appreciated Valerie
my email is sar_282@yahoo.com. Thanks

hi, would you please send me the list, please .

thank you very much and appreciate.

email : mooglepp@gmail.com