Becker AUD Mnemonics-Questions & ANSWERS
100% RATED CORRECT- Guaranteed Pass|
Newest 2025
PRIME test - ✔✔auditor should perform following during subsequent period (b/w
year end and audit report issued):
POST balance sheet transactions
REPRESENTATION letter
INQUIRY concerning litigations, claims, assessments
MINUTES
EXAMINE latest available interim f/s and compare with f/s under audit
DAR them to fix it - ✔✔if client refuses to change and do what you want, notify each
member of board and take these steps to prevent reliance on financials
DISASSOCIATE auditor's report w/ f/s
ALERT agencies (regulatory)
notify RELYING parties
NET - ✔✔Nature (Type - controls or substantive)
Extent (Scope - a lot or a little)
Timing (When - interim or year-end)
HELP ME - ✔✔Six interrelated elements of quality control
,HUMAN resources
ENGAGEMENT/client acceptance and continuance
LEADERSHIP responsibilities
PERFORMANCE of the engagement
MONITORING
ETHICAL requirements
COVER U - ✔✔Management assertions of financial statements:
COMPLETENESS (account balances, transactions, disclosures)
cutOff (correct accounting period, transactions)
VALUATION allocation and accuracy (account balances, transactions, disclosures)
EXISTENCE and occurrence (account balances, transactions exist)
RIGHTS and obligations (to account balances, disclosures)
UNDERSTANDABILITY and classification (disclosures clearly expressed)
, SOAP - ✔✔death by a thousand cuts, in an aggregate the amount is material but not
individually
Summary of adjustments passed
3 types of fraud - ✔✔F/S Fraud - Lying
Asset Misappropriation - Stealing
Corruption - Cheating
CRIME - ✔✔5 components of Internal Control:
CONTROL Environment
RISK assessment
INFORMATION and communication systems
MONITORING
EXISTING control activities
PAID TIPS - ✔✔Strong Internal control activities that are relevant to an audit:
PRE-numbering of documents (your checkbook)
AUTHORIZATION of transactions (signed approval)
INDEPENDENT checks to maintain asset
accountability (checks and balances)
100% RATED CORRECT- Guaranteed Pass|
Newest 2025
PRIME test - ✔✔auditor should perform following during subsequent period (b/w
year end and audit report issued):
POST balance sheet transactions
REPRESENTATION letter
INQUIRY concerning litigations, claims, assessments
MINUTES
EXAMINE latest available interim f/s and compare with f/s under audit
DAR them to fix it - ✔✔if client refuses to change and do what you want, notify each
member of board and take these steps to prevent reliance on financials
DISASSOCIATE auditor's report w/ f/s
ALERT agencies (regulatory)
notify RELYING parties
NET - ✔✔Nature (Type - controls or substantive)
Extent (Scope - a lot or a little)
Timing (When - interim or year-end)
HELP ME - ✔✔Six interrelated elements of quality control
,HUMAN resources
ENGAGEMENT/client acceptance and continuance
LEADERSHIP responsibilities
PERFORMANCE of the engagement
MONITORING
ETHICAL requirements
COVER U - ✔✔Management assertions of financial statements:
COMPLETENESS (account balances, transactions, disclosures)
cutOff (correct accounting period, transactions)
VALUATION allocation and accuracy (account balances, transactions, disclosures)
EXISTENCE and occurrence (account balances, transactions exist)
RIGHTS and obligations (to account balances, disclosures)
UNDERSTANDABILITY and classification (disclosures clearly expressed)
, SOAP - ✔✔death by a thousand cuts, in an aggregate the amount is material but not
individually
Summary of adjustments passed
3 types of fraud - ✔✔F/S Fraud - Lying
Asset Misappropriation - Stealing
Corruption - Cheating
CRIME - ✔✔5 components of Internal Control:
CONTROL Environment
RISK assessment
INFORMATION and communication systems
MONITORING
EXISTING control activities
PAID TIPS - ✔✔Strong Internal control activities that are relevant to an audit:
PRE-numbering of documents (your checkbook)
AUTHORIZATION of transactions (signed approval)
INDEPENDENT checks to maintain asset
accountability (checks and balances)
