All Becker Audit Mnemonics
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1. Unmodified Audit Opinion (Both management and auditor
responsibility): MR DIM REPPORTS CRAME
2. MR DIM REPPORTS CRAME: Unmodified audit opinion:
Management's, Responsibility, Design, Implementation,
Maintenance, Auditor's responsibility, Express an opinion, Plan
and perform, Perfroming procedures, Obtain audit evidence,
assessment of Risk of material mistatement, consider inTernal
control(TEST), relevant to the financial Statements, not to
express an opinion on internal Control, Reasonableness of,
significant Accounting estimates, made by Management, and
Evaluate the presentation of the financial statements.
3. Procedures used to assess going concern: ADMITS
4. ADMITS: Procedures used to assess going concern:
Analytical procedures, Debt compliance, Minutes, Third party
confirmations, Subsequent events review
5. Conditions and events indicative of a going concern
issue(substantial doubt ): FINE
6. FINE: Conditions and events indicative of a going concern
issue:
Financial difficulties, Internal matters, Negative trends, External
matters
7. Mitigating factors of a going concern issue(substantial
doubt ): PPPP
8. PPPP: Mitigation factors of a going concern issue:
Plans to borrow money or restructure debt, Plans to sell
assets, Plans to delay or reduce expenditures, Plans to
increase ownership equity(sell stock)
9. Changing a prior opinion requires an other matters paragraph
with what disclosures: DORCS
10. DORCS: Disclosures required in an other matters paragraph
when changing a prior opinion:
Date of the previous report, Opinion of the previous report,
Reasons for the prior opinion, Changes that have occurred,
Statement that "the opinion...has changed"
11. Subsequent Events procedures: PRIME
12. PRIME: Subsequent events procedures:
Post balance sheet transactions, Rep letter from management,
Inquiry of management(sometimes legal counsel), Minutes,
Examine latest interim financial statements
13. Additional steps to prevent further reliance on an audit
opinion: DAR
14. DAR: Additional steps to prevent further reliance on an audit
opinion:
Disassociate, Alert agencies and Relying parties
15. Required understandings to have an understanding of a
client's business: STAFF
16. STAFF: Required understandings to have an understanding of a
client's business:
Staff qualifications, Transaction types and frequencies,
Accounting basis used for the financial statements, Form of the
accounting records, Financial statements form and content
17. Standard compilation report: MR SAG CES NAG ACE
18. MR SAG CES NAGE ACE: Standard compilation report:
Management, Responsibility, for the financial Statements, in
accordance with Accounting principles, Generally accepted in
the US, we did Not, Audit, or verify the Accuracy, or
Completeness, and do not Express and opinion or any form of
assurance
19. Review performance requirements: U LIAR CPA
20. U LIAR CPA: Review performance requirements:
Understanding with the client, Learn and/or obtain knowledge
of the entity's business, Inquiry of management with financial
and accounting responsibilities, Analytical procedures, Review
- other procedures, Client rep letter from management,
Professional judgement, Accountant (CPA) should
communicate results
21. Standard Review Report: RAM SAD MR DIM AR SAL AC NAM
22. RAM SAD MR DIM AR SAL AC NAM: Standard review report:
Reviewed the financial statements, Analytical procedures,
Making inquiries of managements, Substantially less in scope,
than an Audit, we Do not express an opinion, Management's,
Responsibility, Design, Implement, Maintain, Auditor's,
Responsibility, conduct a review in accordance with SSARS,
AICPA, obtain Limited assurance, Accountant's, Conclusion,
Not, Aware, of any Material modifications.
23. Attestation Standards: TIPPY PASSER
24. TIPPY PASSER: Attestation standards:
General Standards: Training and proficiency, Independence,
Performance and due care, Professional knowledge, You
believe the subject matter is capable of evaluation against
criteria suitable and available to users,
Fieldwork standards: Planning and supervision, Appropriate
sufficient(and relevant) evidence,
Reporting standards: Subject matter and character of the
engagement is identified, Substantial reservations of the
engagement are disclosed, Express conclusions, Restrict use
when necessary
25. Conditions required to perform and Agreed-Upon
Procedures engagement: I AM SURE
26. I AM SURE: Conditions required to perform an agreed-upon
procedures engagement:
Independence, Agreement of parties, Measurability and
consistency, Sufficiency of procedures is the responsibility of
specified parties, Use of the report is restricted to specified
parties, Responsibility for the subject matter is the client's,
Engagements for prospective financial statements must include
a summary of significant assumptions
27. Management's assertions of Financial Statements: COVER U
28. COVER U: Management assertions of financial statements:
Completeness, cutOff, Valuation allocation and accuracy,
Existence and occurrence, Rights and obligations,
Understandability and classification
29. Account balance assertions: CVER
30. Transaction and events assertions: COVE U 51. FIVE CARROT CARS: Audit procedures used in every audit:
31. Presentation and disclosure assertions: CVR U Footing, Inquiry, Vouching, Examination, Confirmation,
Analytical procedures, Reperformance, Reconciliation,
32. PCAOB management assertion of financial statements: CEO
Observation, Tracing, Cutoff review, Auditing related accounts
APROVED
simultaneously, Rep letter, Subsequent events review
33. CEO APROVED: PCAOB management assertions of financial
52. Quality control elements at an Accounting Firm: HELP ME
statements:
Completeness, Existence, Occurence, Allocation, Presentation, 53. HELP ME: Quality control elements:
Rights, Obligations, Valuation, Disclosure Human resources, Engagement/client acceptence and
continuance, Leadership responsibilities, Performance of the
34. The elements of further audit procedures adjusted in
engagement, Monitoring, Ethical requirements
response to the assessed level of risk: NET
35. NET: The elements of further audit procedures adjusted in
response to the assessed level of risk:
Nature, Extent, Timing
36. Steps of assessing the Risk of Material Misstatement: IM A
CPA
37. IM A CPA: Steps of assessing the risk of material misstatement:
Internal control, entity, and environment - obtain an
understanding, Material misstatement - assess the risk, Assed
level of risk - respond with NET, Control testing - operating
effectiveness, Perform substantive procedures, Audit evidence
- evaluate appropriateness and sufficiency
38. COSO Components of Internal Control: CRIME
39. CRIME: COSO components of internal control:
Control environment, Risk assessment, Information and
communication systems, Monitoring, Existing control activities
40. Existing control activities that are relevant to an audit: PAID
TIPS
41. PAID TIPS: Existing control activities that are relevant to an
audit:
Prenumbering of documents, Authorization of transactions,
Independent checks to maintain asset accountability,
Documentation, Timely and appropriate performance reviews,
Information processing controls, Physical controls for
safeguarding assets, Segregation of duties
42. Segregation of Duties: ARC
43. ARC: Segregation of duties:
Authority, Reporting, Custody
44. Acceptable types of documentation of the auditor's
understanding of internal controls: FIND
45. FIND: Acceptable types of documentation of the auditor's
understanding of internal controls:
Flowcharts, Internal control questionnaire or checklist,
Narrative, Documentation from the client.
46. IT Segregation of duties: COPAL
47. COPAL: It segregation of duties:
Control group, Operators, Programmers, Analysts(system),
Librarian
48. Hierarchy of Audit Evidence: AEIO
49. AEIO: Hierarchy of audit evidence:
Auditor knowledge, External evidence, Internal evidence, Oral
evidence
50. Audit procedures used in every audit: FIVE CARROT CARS