Tuesday 28 May 2013

Useful mnemonics for ACCA F8 Audit and Assurance

Preparing for exams, I have noticed that there are an enormous amount of new information to memorize. My mind explodes. How to improve the memorizing? Mnemonics is an answer. Many of lecturers on Opentuition use this technique to improve the memorizing of their students.



Art of memory was very important in preliterate times when priests, shamans and the teller had to memorize vast amounts of information. The first texts about Mnemonics were written by the ancient Greeks. In the Renaissance, the knowledge was especially valued, so the ability to keep the knowledge in mind was the key to success. Giordano Bruno has published a book on mnemonics "The shadows of ideas." He was invited by the French King Henry IV, who tried to find out - how he had so much knowledge) And in our time interest in mnemonics is not waned.

I have collected some mnemonics to memorize the information of ACCA F8 Audit and Assurance and ACCA P1 Governance, ethics and risks.

Financial statements assertions
ACCA COVER

Accuracy
Completeness
Cut off
Allocation

Classification and understandibility
Occurence
Valuation
Existance
Rights and obligations

Sources of evidence
AEIOU



Analytical procedures
Enquiry and confirmation
Inspection
Observation
recalcUlation and reperformance

Ethics - fundamental principles
OPPIC

Objectivity
Professional behaviour
Professional competence
Integrity
Confidentiality

Ethics - threats
ASSIF

Advocacy
Self-interest
Self-review
Intimidation
Familiarity

Ethics - indicators of threats
FULL STOP

Friends and family
Undue fee dependence
Loans to/from
Litigation

Shares in client
Taking gifts and hospitality
Overdue fees
Provision to the other services

Corporate governance - concepts
HAIR DRIFT

Honesty / probity
Accountability
Independence
Responsibility

Decision taking / judgement
Reputation
Integrity
Fairness
Transparency / openness

Stakeholdres - anyone or any group
PINK LAVR

Primary or secondly
Internal or external
Narrow or wide
Known or unknown

Legitimate or illegitimate
Active or passive
Voluntary or involuntary
Recognised or unrecognised

Internal controls - categorisation
OPA SPAMS   or    SPAM SOAP

Organisational
Physical
Arithmetic and Accounting

Segregation of duties
Personnel
Authorisation and approval
Management
Supervision

Audit committee - role and function
CLARISSA

Creat a climate of discipline and control
Lend credibility in financial statements
Assist CFO providing a forum
Review financial statements to improve quality
Independent judgement
Strengthen position of the internal auditor
Strengthen position of the external auditor
Assist in the resolution of dispites between external auditor and the board

Control objectives
A STOP

Accuracy
Safeguarding asset
Timing reporting
Orderly efficient business conduct
Prevention fraud or non-compliance of law

Control procedures
CARCAP

Comparison
Authorisation
Reconciliations
Computer controls
Arithmetical
Physical

Evaluation of expert's work
CCO

Competent ?
Capable ?
Objective?



Please, add your mnemonics in the comments )))

See the free video about substantive procedures 

See the free video about past exam paper F8

The summary notes of F8 


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