ACCA Paper P1 Mnemonics Lounge

Internal Control Objectives PESTA

P-Prevent and detect fraud
E-Efficient and orderly conduct of business
S-Safeguard of Company assets
T-Timely preparation of financial information
A- Accuracy and completeness of accounting records

Role of NEDs-PRSS

P-People role: appoint & remove EDs, remuneration, sits on Nomination committee & remuneration committee

R-Risk role: assess risk mgt. process & ensure risk are identified, ensure IC system are strong

S-Strategy role: challenge and evaluate directors strategies and offer advice.

S-Scrutiny role: scrutinize EDs performance, hold them accountable if strategic objectives not realized.

I have a few odd ones.

Role of Audit Committee (Rap Mamas)

R – Review Audit effectiveness
A – Appoint external auditors
P – Provide disclouse

M – Monitor internal audit
A – Advise the board
M – Monitor integrity of financial statements
A – Agree Audit Fee
S – Scrutinize Auditor Independance

Role of Remuneration Committee (DAD AS APE)

D – Develop a remuneration framework
A – Agree Comensation
D – Decide Remuneration package

A – Advise the board
S – Set employment conditions

A – Assure Shareholders
P – Provide disclosue
E – Ensure fair and just rewards

Role of Nomination Committee (PRESS AIR)

P – Provide Disclouse
R – Reappointments
E – Evaluate Skills and knowledge of the board
S – Structure of the board
S – Succession plan

A – Advise the board
I – Identify conditions
R – Review role definitions

Role of Risk Committee – PIE RAP

P – Provide disclosures
I – Internal controls policy and influence
E – Embed risk awarness

R – Review internal control
A – Advise the board
P – Promote a risk based approach to internal audit

Role of Risk Manager (HR REP)

H – Help departments manage risk
R – Receive risk reports from each department

R – Report to the risk committee
E – Ensure laws and codes are complied with
P – Put risk management policies into place