[AndreA]

I made it for myself my exam in 3 days, most of the mnemonics are useless for others, because I speak three languages, but it may help you to refresh your memory before the exam, just use your own mnemonics.

Preface (PIDROS)
Public Interest
Integrity
Due care
Responsibilities
Objectivity and Independence
Scope and Nature

Threats (SASA-FUM)
Self interest
Adverse interest
Self Review
Advocacy interest
Familiarity
Undue influence
Management participation

Principles underlying audit (PR-PR)
Purpose/Premise
Responsibilities
Performance
Reporting

Quality Control (HELC-ME)
Human resources
Engagement performance
Leadership
Client Acceptance
Monitoring
Ethical requirements

Audit Data Analytics (PP.RPER)
Plan
Prepare
Relevance/Reliability
Perform
Evaluate

Fraud (POR)
Pressure/Incentives
Opportunity
Rationalization/Attitude

Understanding the Entity Environment (CRIC-M)
Control environment
Risk Assessment
Information Technology
Control Activity
Monitoring

Control Activity (SCARE)
Segregation of duties – (CARR)
Custody
Authorization
Review performance
EDT / IT

Assertions AICPA
B.S (VERC)
Valuation and Allocation
Existence
Right and Obligation
Completeness

I.S.(CACOC)
Completeness
Accurace
Cut-off
Occurrence
Classification

Presentation and Disclosure
Occurrence/Right and Obligation
Completeness
Accuracy and Valuation
Classification and Understandability

Assertions PCAOB (VERCP)
Valuation and Allocation
Existence
Right and Obligation
Completeness
Presentation and Disclosure

IT General control (PASAD)
Program change
Access security
System software acquisition
Application system acquisition
Data center and Network operation
(System analyst, Programmer, Operator, Librarian, Security)

IT Application control (POI)
Input control
Process control
Output control

Attribute Sampling (Test of Control)
Sample size – increase
Expected error rate – increase
Tolerable rate – decrease
Control risk too high – decrease

Sample error rate = #of errors found / sample size
Sample error rate + Allowance for Sampling risk = Upper Deviation rate

Variable Sampling (Substantive Procedures)
Sample size – increase
Expected error – increase
Population size – increase
Tolerable Misstatement – decrease
Risk of incorrect acceptance – decrease

Difference estimation
Ratio estimation
Mean-per-unit estimation

PPS Sampling
Disadvantage – zero or negative balances
Advantage – smaller sample size, overstatement

Sample size = Reliability factor * Population Book Value / Tolerable misstatement (net of expected misstatements)
Sample Interval = Population Book Value / Sample size

Projected Misstatement
If Book value < Sample interval = Actual Misstatements
If Book value < Sample interval = Tainting %
Tainting % = (Book value – Audit value) / Book value * Sample interval

Discovery Sampling
Detect Fraud

[H]

AUD cheat sheet notes

[Author]

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