AAAPlease Share your P7 Mnemonics ..................PLZ hurry......

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

For management assertions we already know that ACCA COVER
but further classifying them into Transactions , Accounts, Presentation & Disclosures

T A P
T = Transactions ACCA CO
A = Accounts RECV
P = Presentation & Disclosure CAR CO

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

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 Mnemonic for 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 f/s



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
Materiality Levels
Analytic Procedures- Ratios
Risk (Audit)-Ir X Cr X Dr
Knowledge Of Business
Staffing- Number And Skills Required.
Audit Approach- Procedural Or Risk Based
Timing- After Year End.



FAT SIS threats to auditor’s independence
Financial
Advocacy
Threats
Self Review
Intimidation
Self Interest

A,E,I,O,U i.e. vowels (Audir Procedures)

Analytical procedures
Enquiry
Inspection
Observation
recalcUlation and reperformance

CACSO Audit stages

Client acceptance/retention stage
Audit planning stage
Control testing stage*
Substantive testing stage
Opinion formulation stage

* only applicable where the audit approach includes reliance on one or more control procedures.

PEEDO Audit Activities
1. Planning
2. Evidence gathering
3. Evidence evaluation
4. Decision making
5. Other activities (delegation, supervision and review- required continious throughout the audit engagement)

plz also share urs.........hope this can help

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

Thanks guys for the P7 Mnemonics

Can anyone post the mock for Bpp and Kaplan for P2 AND P7 Intenational on [email protected]

Regards

Penjani

Evaluation of Tender
FPPP
F= Fee
P= Professionalism
P= Proposed approach
P= Personal service

Contents of Tender:

w2ROCE

Who we aRe: Histroy, portfolio, group structure, Senior profile
What we Offer: Services etc.
What we Charge: qoute fee exactly.
What we Expect: Client Responsilbility.

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

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

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