F8 - Acronyms
2
F8 – ACRONYM DIRECTORY Page 1 of 2 [email protected] http://groups.yahoo.com/group/acca_bd/ ACCA fundamental principles of code of ethics: COPIC C – Competence: professional knowledge and skill O – Objectivity: should not allow bias, conflicts of interest or undue influence of others P – Professional behaviour I – Integrity: straightforward and honest C – Confidentiality Auditor’s consideration deciding whether to accept an audit assignment: PLACE P – Professional clearance: writing to the leaving auditor L – Legal considerations: anything that would prevent auditor from doing the job legally; e.g. licensing A – Auditor considerations: resources, time, skills C – Commercial considerations: e.g. KOB E – Ethical consideration Situations where an auditor leaves: 3Rs R – Resign R – Retire R – Removal Factors auditor consider before relying on other people’s work: STRIP S – Scope of work T – Technical competence R – Report quality I – Independence P – Professionalism Limitations of internal controls: FAME F – Fraudulent collusion A – Abuse of authority M – Management authority E – Errors What are the financial statement assertions: V COD RACE V – Valuation C – Completeness: all transactions that should be included, actually included? O – Occurrence D – Disclosure R – Rights and obligations A – Accuracy C – Cut-off E – Existence: actually exists? Method of tests that the auditor can use: AEIOU + CR A – Analytical review E – Enquiry: ask client I – Inspection: e.g. NCA O – Observation: watch when it actually happens U – Recalcu lation: e.g. depreciation, interest + C – Confirmation: by third party; e.g. lawyers, bank, receivables R – Re-performance: e.g. stock count General substantive tests that can be used by the auditor: A TOAD A – Add-up T – Trial balance O – Opening balance to last year’s closing (compare) A – Audit software D – Disclosure check
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F8 audit & assurance mnemonic
Transcript of F8 - Acronyms
F8 – ACRONYM DIRECTORY
Page 1 of 2 [email protected]
http://groups.yahoo.com/group/acca_bd/
ACCA fundamental principles of code of ethics: COPIC C – Competence: professional knowledge and skill O – Objectivity: should not allow bias, conflicts of interest or undue influence of others P – Professional behaviour I – Integrity: straightforward and honest C – Confidentiality Auditor’s consideration deciding whether to accept an audit assignment: PLACE P – Professional clearance: writing to the leaving auditor L – Legal considerations: anything that would prevent auditor from doing the job legally; e.g. licensing A – Auditor considerations: resources, time, skills C – Commercial considerations: e.g. KOB E – Ethical consideration Situations where an auditor leaves: 3Rs R – Resign R – Retire R – Removal Factors auditor consider before relying on other people’s work: STRIP S – Scope of work T – Technical competence R – Report quality I – Independence P – Professionalism Limitations of internal controls: FAME F – Fraudulent collusion A – Abuse of authority M – Management authority E – Errors What are the financial statement assertions: V COD RACE V – Valuation
C – Completeness: all transactions that should be included, actually included? O – Occurrence D – Disclosure
R – Rights and obligations A – Accuracy C – Cut-off E – Existence: actually exists? Method of tests that the auditor can use: AEIOU + CR A – Analytical review E – Enquiry: ask client I – Inspection: e.g. NCA O – Observation: watch when it actually happens U – Recalculation: e.g. depreciation, interest +
C – Confirmation: by third party; e.g. lawyers, bank, receivables R – Re-performance: e.g. stock count General substantive tests that can be used by the auditor: A TOAD A – Add-up
T – Trial balance O – Opening balance to last year’s closing (compare) A – Audit software D – Disclosure check
F8 – ACRONYM DIRECTORY
Page 2 of 2 [email protected]
http://groups.yahoo.com/group/acca_bd/
Specific tests can be used for receivables: 3Cs C – Circularisation C – Cut-off C – Cash paid after the y/e Specific tests can be used for trade payables: CRAP C – Cut-off R – Reconcile supplier statement A – Analytical procedure P – Post year ending invoice review Company objectives for internal controls: AS PIE A – Accurate accounting records S – Safeguard the assets
P – Prevent and detect fraud I – Internal policy followed E – Efficiency General controls expected in an organisation:
- Good recruitment procedures - Good training procedures - Internal audit department - Management of 3As: Attitude, Awareness, Action - Incentives
Specific controls expected in an organisation: ACCA MAPS A – Authorisation C – Comparison: i.e. analytical review C – Computer controls: e.g. passwords A – Arithmetic: i.e. add-up
M – Maintain a trial balance A – Accounting reconciliations P – Physical controls S – Segregation of duties What should be present in a panning document: MARK SAT M – Materiality and tolerable error A – Analytical review R – Risk K – KOB S – Staffing A – Audit approach T – Timetable
