F8 ACRONYM DIRECTORY

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
Auditors 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 peoples 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 years closing (compare)
A Audit software
D Disclosure check

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mezbah.ahmed@bimsedu.com
http://groups.yahoo.com/group/acca_bd/

F8 ACRONYM DIRECTORY
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

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mezbah.ahmed@bimsedu.com
http://groups.yahoo.com/group/acca_bd/