P1 mnemonics

Quality/ characteristic of good information ACCURATE

Accurate

Complete

Cost beneficial

User targeted

Relevant

authoritative

Timely

Easy to use

To remember Gray, Owen and Adams in order:

Pristine capitalist

Expedients

Social contract

Social ecologist

Socialist

Radical feminist

Deep ecologist

Pretty Easy Shedules Stop Silly Random Deadlines

(also remember that the three socials are in alphabetical order)

Airdrie or (H)airdrie(r) Ideally, the a and the i would be reversed to be iardrie

but iardrie is not the name of a town in Scotland whereas Airdrie is.

And Airdrie is the mnemonic for the work of internal auditors and / or the risk
committee

Analyse

Identify

Report

Design

Recommend

Implement

Evaluate
Clarissa Whistle-Blower the role of the audit committee

Create an atmosphere of discipline and control

Lend an air of credibility to the financial statements

Assist the CFO by providing a forum

Review the financial statements to see if presentation could be any clearer

Independent attitude brought to their office

Strengthen the role of the internal auditor

Strengthen the role of the external auditor

Assist in dispute resolution between execs and external auditors

Clarissas maiden name was Whistle and she married a guy called Blower so shes
now Clarissa Whistle-Blower
and she lends an ear to any of the companys employees who want to blow the
whistle on company activities

Internal Controls

spam soap

Organisational Controls

Control over the organisation structure including managers having specific

Responsibilities and delegations tasks.

Authorisation
 Controls to ensure that transactions do not proceed until an appropriate individual
has given approval.

Physical

Protection of assets against theft, unauthorised access or use.

Supervision

Oversight of work of other individuals to ensure tasks are carried out correctly.

Personnel
 Controls in place to ensure the suitable people are employed.

Arithmetic Accounting

Checking accounting transactions for accuracy, includes use of accounts and

reconciliations (e.g. bank reconciliation).

Segregation/rotation

Different people for each transaction to Authorise, Record, Maintain physical

custody of any assets (i.e. petty cash), pay for it.

Management Controls
 Control actions taken by management depending on the contents of reports
received. Managers should be involved in the day to day supervision of staff.

Corporate Governance elements

HAIRDRIFT

Honesty/Probity

Accountability

Independence

Responsibility

Decision taking/Judgement

Reputation
Integrity

Fairness

Transparency/Openness

Role and Function of an Audit Committee

CLARISSA

. create a climate of discipline and control C

. lend an air of credibility and objectivity L

. assist CFO by providing a forum A

. review financial statements to improve the quality of R

. independent judgement I

. strengthen position of the internal auditor S

. strengthen position of the external auditor S

. assist in the resolution of disputes A

Leo_TWP said 1 year, 1 month ago:

Types of Stakeholders PINKLAVR

Primary/Secondary

Internal/External

Narrow/Wide
Known/Unknown

Legitimate/Illegitimate

Active/Passive

Voluntary/Involuntary

Recognised/Unrecognised

role of Non-Executive Directors (NEDs)= StRiP Performance

St= strategic roles

Ri= risk assessment roles

P= Peoples role

Performance role
In accordance with Higgs report

Role of Charman (Higgs report) = RAISE DIP

R= run the board

A=(ensure) active engagement by board members

I= Induction programme

S= sufficient time for complex decision

E= effective communication with shareholders

D= development needs of directors

I= information provided are accurate and timely

P= performance evaluation

STAKEHOLDERS= ICE

Internal

Connected

Extenal

American Accounting Association approach to ethical issues.

FenABCD

F=Fact.
E=Ethic (Independence, Obedience, Confidentiality)

N=Norm (Objectivity,.Governance. Independence, transparency)

A= Alternative Course of action.

B=Best Course of action.

c=Consequences of each action

D=Decision

Corporate Social Responsibility:

PELE:

P- Philanthropic

E- Ethics

L- Legal
E- Economy.

Approaches to CSR

PRAD

P- Proactive

R- Reactive

A- Accomodative

D- defensive

PRESSSD

Pristine Capitalist

Radical Feminist

Expedients
Social Contract

Social Ecologist

Socialist

Deep Ecologist

COSO provide a framework which is used to assess the effectviness of the system of
internal control. It consists of 5 elements (CRIME)

1. Control activities

2. Risk assesment

3. Information and communication

4. Monitoring

5. Environment (control environment)

Benefits or elements of Corporate goverance-FOCUS

- provides a Framework for pursuing org startegies

-includes an Operation of appropriate and adequate internal control system with

management of risks.

-increase Confidence of s/h in org and trust in fin stat

-Underpins capital market confidence into companies

-Offers safeguards to protect cos assets and s/h interest

Core principles of CG- FIJI OPRA R

Fairness

Integrity

Judgement
Independence

Openness

Probity

Responsibilty

Accountability

Reputation

Charactersitics of Principle based approach FLAWS

Focus on objectives

Lay stress on areas where rules cant applied such as culture n s/h relationships

Applied to cross juridiction

Works on comply n explain basis

adopted where Stock market have prime role in setting standards

Charactersitics of Rule based approach- MENDO

More emphasis on definite approach

Easy to tick boxes whether comply or not

No leeway or deviation

Difficult to deal in questionable situation where not enough guidelines in rulebook

Obeying the letter of law rather than its spirit.

sarbanes oxley principlesPAN AQWA OIC

Public oversight board

Auditing standards

Non audit services

Auditor and audit committee

Quality control procedures

Whistleblowers protection

Off balance sheet transactions

Internal control reporting

Corporate reporting

Role of ChairmanREREFEET

Running the board

Ensure timely n accuarate info to board

Reporting in n singing off

Encourage active envolvement of all

Facilitate board appraisal

Ensure affective communication with s/h

Ensure sufficeint time allowed for controversial issues

Taking the lead in board development

Role of CEO-BRIBE

Business Strategy and management

Risk management

Investment and financing decisions

Board commitees

Evaluating structure of org operation n performance review

Purpose of internal Control SystemATASAP

Acheiving orderly conduct of business

Timely preparation of reliable info

Adherence to internal policies and laws

Safeguarding assets n sh interest

Accuracy and completeness of a/c records

Prevention n detection of fraud

Corporate Governance Principles:

Honesty/Probity

Accountability

Integrity

Responsibility

Decision-taking/ Judgment
Reputation

Independence

Fairness

Transparency

Roles of a Risk Management Committee = PARMA

Providing early warning on emerging risk issue

Assesing an effectiveness of risk managem system

Reviewing reports on key risk

Monitoring risk exposure

Approvin orgs risk management strategies and policies

corporate governance objectives

JAFRI TRIP

JUDGEMENT

ACCOUNTABILITY

FAIRNESS

RESPONSIBILITY

INTEGRITY

TRANSPERANCY

REPUTATION

INDEPENDANCE

PROBITY
Role of ChairmanFREE TREE

Facilitate board appraisal

Running the board

Ensure timely n accuarate info to board

Encourage active involvement of all

Taking the lead in board development

Reporting in n singing off

Ensure affective communication with s/h

Ensure sufficeint time allowed for controversial issues

For Sarbanes Oxley Act Principles

QWAC PIANO

Quality control procedures

Whistleblowers protection

Auditing standards

Corporate reporting

Public oversight board

Internal control reporting

Auditor and audit committee

Non-audit services

Off balance sheet transactions