P1 mnemonics

P1 mnemonics

Quality/ characteristic of good information ACCURATE

Accurate

Complete

Cost benecial

User targeted

Releant

authoritatie

 Timely

Easy to use

 To  To remember !ray" #$en #$en and Adams in order% order%

Pristine capitalist

E&pedients

'ocial contract

'ocial ecologist

'ocialist

Radical feminist

(eep ecologist

Pretty Easy 'hedules 'top 'illy Random (eadlines

)also remember that the three *socials+ are in alphabetical order,

Airdrie or )-,airdrie)r, .deally" the a0 and the i0 $ould be reersed to be iardrie

but iardrie is not the name of a to$n in 'cotland $hereas Airdrie is

And Airdrie is the mnemonic for the $or2 of internal auditors and / or the ris2 committee

Analyse

.dentify

Report

(esign

Recommend

.mplement

Ealuate

Clarissa 3histle45lo$er 6 the role of the audit committee

Create an atmosphere of discipline and control

7end an air of credibility to the nancial statements

Assist the C8# by proiding a forum

Reie$ the nancial statements to see if presentation could be any clearer

.ndependent attitude brought to their o9ce

'trengthen the role of the internal auditor

'trengthen the role of the e&ternal auditor

Assist in dispute resolution bet$een e&ecs and e&ternal auditors

Clarissa+s maiden name $as 3histle and she married a guy called 5lo$er so she+s no$ Clarissa 3histle45lo$er 6

and she lends an ear to any of the company+s employees $ho $ant to blo$ the $histle on company actiities

.nternal Controls

spam soap

#rganisational Controls

: Control oer the organisation structure including managers haing specic

: Responsibilities and delegations tas2s

Authorisation

: Controls to ensure that transactions do not proceed until an appropriate indiidual has gien approal

Physical

: Protection of assets against theft" unauthorised access or use

'uperision

: #ersight of $or2 of other indiiduals to ensure tas2s are carried out correctly

Personnel

: Controls in place to ensure the suitable people are employed

Arithmetic Accounting

: Chec2ing accounting transactions for accuracy" includes use of accounts and reconciliations )eg ban2 reconciliation,

'egregation/rotation

: (i;erent people for each transaction to 6 Authorise" Record"

: Control actions ta2en by management depending on the contents of reports receied
Corporate !oernance elements

-A.R(R.8T

-onesty/Probity

Accountability

.ndependence

Responsibility

(ecision ta2ing/=udgement

Reputation

.ntegrity

8airness

 Transparency/#penness

Role and 8unction of an Audit Committee

C7AR.''A

 create a climate of discipline and control> C

 lend an air of credibility and ob?ectiity>> 7

 assist C8# by proiding a forum A

 reie$ nancial statements to improe the @uality of> R

 independent ?udgement .

 strengthen position of the internal auditor '

 strengthen position of the e&ternal auditor '

 assist in the resolution of disputes>>>>>> A



7eoBT3P said 1 year" 1 month ago%

 Types of 'ta2eholders 6 P.D7AR

Primary/'econdary

.nternal/E&ternal

arro$/3ide

Dno$n/Un2no$n

7egitimate/.llegitimate

Actie/Passie

oluntary/.noluntary

Recognised/Unrecognised

role of on4E&ecutie (irectors )E(+s,F 'tRiP Performance

'tF strategic roles

RiF ris2 assessment roles

PF People+s role

Performance role

.n accordance $ith -iggs report

Role of Charman )-iggs report, F RA.'E (.P

RF run the board

AF)ensure, actie engagement by board members

.F .nduction programme

'F su9cient time for comple& decision

EF e;ectie communication $ith shareholders

(F deelopment needs of directors

.F information proided are accurate and timely

PF performance ealuation

'TADE-#7(ER'F .CE

.nternal

Connected

E&tenal

American Accounting Association approach to ethical issues

8enA5C(

8F8act

EFEthic ).ndependence" #bedience" Condentiality,

Form )#b?ectiity"!oernance .ndependence" transparency,

AF Alternatie Course of action

5F5est Course of action

cFConse@uences of each action

(F(ecision

Corporate 'ocial Responsibility%

PE7E%

P4 Philanthropic

E4 Ethics

74 7egal

E4 Economy

Approaches to C'R

PRA(

P4 Proactie

R4 Reactie

A4 Accomodatie

(4 defensie

PRE'''(

Pristine Capitalist

Radical 8eminist

E&pedients

'ocial Contract

'ocial Ecologist

'ocialist

(eep Ecologist

C#'# proide a frame$or2 $hich is used to assess the e;ectiness of the system of  internal control .t consists of G elements )CR.
1 Control actiities

H Ris2 assesment

I .nformation and communication

J
G Enironment )control enironment,

5enets or elements of Corporate goerance48#CU'

4 proides a 8rame$or2 for pursuing org startegies

4includes an #peration of appropriate and ade@uate internal control system $ith management of ris2s

4increase Condence of s/h in org and trust in n stat

4Underpins capital mar2et condence into companies

4#;ers safeguards to protect co+s assets and s/h interest

Core principles of C!K4 8.=. #PRA R

8airness

.ntegrity

 =udgement

.ndependence

#penness

Probity

Responsibilty

Accountability

Reputation

Charactersitics of Principle based approachK 87A3'

8ocus on ob?ecties

7ay stress on areas $here rules cant applied such as culture n s/h relationships

Applied to cross ?uridiction

3or2s on comply n e&plain basis

adopted $here 'toc2 mar2et hae prime role in setting standards

Charactersitics of Rule based approach4

Easy to tic2 bo&es $hether comply or not

o lee$ay or deiation

(i9cult to deal in @uestionable situation $here not enough guidelines in ruleboo2

#beying the letter of la$ rather than its spirit

sarbanes o&ley principlesKPA AQ3A #.C

Public oersight board

Auditing standards

on audit serices

Auditor and audit committee

Quality control procedures

3histleblo$ers protection

#; balance sheet transactions

.nternal control reporting

Corporate reporting

Role of ChairmanKRERE8EET

Running the board

Ensure timely n accuarate info to board

Reporting in n singing o; 

Encourage actie enolement of all

8acilitate board appraisal

Ensure a;ectie communication $ith s/h

Ensure su9ceint time allo$ed for controersial issues

 Ta2ing the lead in board deelopment

Role of CE#K45R.5E

5usiness 'trategy and management

Ris2 management

.nestment and nancing decisions

5oard commitees

Ealuating structure of org operation n performance reie$

Purpose of internal Control 'ystemKATA'AP

Acheiing orderly conduct of business

 Timely preparation of reliable info

Adherence to internal policies and la$s

'afeguarding assets n s+h interest

Accuracy and completeness of a/c records

Preention n detection of fraud

Corporate !oernance Principles%

-onesty/Probity

Accountability

.ntegrity

Responsibility

(ecision4ta2ing/ =udgment

Reputation

.ndependence

8airness

 Transparency

Roles of a Ris2
Proiding early $arning on emerging ris2 issue

Assesing an e;ectieness of ris2 managem system

Reie$ing reports on 2ey ris2


Approin org+s ris2 management strategies and policies

corporate goernance ob?ecties

 =A8R. TR.P

 =U(!E
ACC#UTA5.7.TL

8A.RE''

RE'P#'.5.7.TL

.TE!R.TL

 TRA'PERACL

REPUTAT.#

.(EPE(ACE

PR#5.TL

Role of ChairmanK8REE TREE

8acilitate board appraisal

Running the board

Ensure timely n accuarate info to board

Encourage actie inolement of all

 Ta2ing the lead in board deelopment

Reporting in n singing o; 

Ensure a;ectie communication $ith s/h

Ensure su9ceint time allo$ed for controersial issues

8or 'arbanes #&ley Act Principles

Q3AC P.A#

Quality control procedures

3histleblo$ers protection

Auditing standards

Corporate reporting

Public oersight board

.nternal control reporting

Auditor and audit committee

on4audit serices

#; balance sheet transactions