CPA Exam — AUD flashcards
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Analytical Procedures for Seasonal Industries
Flip cardAnalytical procedures tailored to account for predictable fluctuations in financial data that occur due to seasonal business cycles, often involving period-over-period comparisons of specific intervals.
- Focus on comparing same periods across different years.
- Helps identify deviations from expected seasonal patterns.
- More effective than annual or broad comparisons for seasonal businesses.
Memory trick: Same season, same reason, compare the year's rhyme.
Identifying Undisclosed Related Parties
Flip cardProcedures aimed at detecting related party transactions or relationships that management has not explicitly identified or disclosed to the auditor.
- Focus on governance communications and unusual transactions.
- Requires professional skepticism.
- Often involves reviewing legal and financial documents.
Memory trick: Look for the hidden connections in the official records.
Revenue Recognition for Long-Term Contracts (Percentage-of-Completion)
Flip cardUnder the percentage-of-completion method, revenue and profit are recognized as work progresses based on the proportion of costs incurred to total estimated costs. Auditors must carefully assess management's cost estimates due to the risk of revenue overstatement.
- Revenue recognized based on progress towards completion.
- Progress is often measured by costs incurred / total estimated costs.
- Risk of overstatement if total estimated costs are understated.
- Auditors test the reasonableness of cost estimates.
Memory trick: Overstatement in construction revenue often hides in the 'ESTIMATES'.
SOC 1 Type 2 Report
Flip cardA report by a service organization's auditor on the description of the service organization's system and the suitability of the design and operating effectiveness of controls over a specified period.
- Focuses on internal control over financial reporting (ICFR).
- Includes management's description of the system.
- Provides opinion on design and operating effectiveness of controls.
- Covers a specific period (e.g., 6 or 12 months).
Memory trick: SOC 1 Type 2: Controls Operating Clearly for ICFR.
Monetary Unit Sampling (MUS)
Flip cardA statistical sampling method used primarily for substantive testing of account balances. It selects individual dollars as the sampling unit and is efficient for detecting overstatements, especially when few misstatements are expected.
- Sampling unit is the individual dollar.
- Larger dollar amounts have a higher probability of selection.
- Sample size is influenced by tolerable misstatement, expected misstatement, and desired confidence level.
- More efficient for detecting overstatements.
Memory trick: To get a BIGGER MUS sample, you want more CONFIDENCE.
Auditing Percentage-of-Completion Revenue
Flip cardWhen auditing revenue recognized using the percentage-of-completion method, the auditor must verify the accuracy of the estimated percentage of completion and the total estimated contract costs and revenues. This method relies heavily on management's estimates and cost accounting data.
- Revenue is recognized based on progress towards completion, often measured by costs incurred to date divided by total estimated costs.
- Key audit risks include inaccurate cost estimates, fraudulent reporting of progress, and improper recognition of revenue.
- Auditors examine cost records, engineering reports, and management's estimation processes.
Memory trick: For %-of-completion, CHECK the ESTIMATES of COSTS to ensure ACCURATE revenue.
Valuation of Work-in-Process (WIP) Inventory
Flip cardValuation of Work-in-Process (WIP) inventory involves determining the appropriate cost to assign to partially completed goods, including raw materials, direct labor, and allocated manufacturing overhead. This often relies on a client's cost accounting system and standard costing methods.
- WIP valuation is complex due to multiple cost components and stage of completion.
- Auditors typically review the client's cost accounting system, standard costs, and allocation methods.
- Procedures include comparing standard costs to actuals, testing overhead allocation, and reviewing for obsolescence.
Memory trick: WIP's VALUE comes from its COMPONENTS, so CHECK the COSTS.
Completeness Assertion
Flip cardThe completeness assertion states that all transactions and events that should have been recorded have been recorded, and all assets, liabilities, and equity interests that should have been included in the financial statements have been included.
- Tests for completeness typically involve tracing from a source document or population to the accounting records.
- A common risk for completeness is unrecorded liabilities or revenues.
- Examples include tracing shipping documents to sales invoices, or purchase orders to accounts payable.
Memory trick: COMPLETE records mean NOTHING is MISSED from START to END.
Valuation and Allocation Assertion (Inventory)
Flip cardThe valuation and allocation assertion for inventory states that inventory is recorded at appropriate amounts, including proper application of costing methods, write-downs for obsolescence, and allocation of costs.
- Ensures inventory is stated at lower of cost or market/NRV.
- Considers obsolescence, damage, and decline in utility.
- Impacted by physical condition of inventory.
Memory trick: Dusty bins mean money sins.
SOC 1 Type 2 Report Reliance
Flip cardA SOC 1 Type 2 report provides assurance on the design and operating effectiveness of controls at a service organization relevant to a user entity's internal control over financial reporting.
- Covers a specified period (e.g., 6-12 months).
- Includes the service auditor's opinion on control design and operating effectiveness.
- Essential for user auditors when client's controls are processed by a service organization.
Memory trick: SOC's Scope and Operation are Key to Our Trust.
Completeness Assertion (Accounts Payable)
Flip cardThe completeness assertion for accounts payable states that all liabilities that should have been recorded are recorded.
- Crucial for detecting understatement of liabilities.
- Often tested by searching for unrecorded liabilities.
- Involves examining transactions occurring after year-end.
Memory trick: Every CPA Has a Right to Value Completeness.
Non-Statistical vs. Statistical Sampling
Flip cardStatistical sampling uses mathematical theory to design the sample and evaluate results, allowing for quantification of sampling risk. Non-statistical sampling relies on auditor judgment.
- Statistical sampling provides an objective measure of sampling risk.
- Non-statistical sampling often allows for greater flexibility and judgment in sample selection.
- Both methods can provide sufficient appropriate audit evidence if properly applied.
Memory trick: Sampling: Stat is Math, Non-Stat is Path (Judgment).
Going Concern Assessment
Flip cardThe auditor assesses whether there is substantial doubt about an entity's ability to continue as a going concern for a reasonable period of time (typically one year from the financial statement date).
- Indicators include recurring losses, negative cash flows, and debt defaults.
- Management's plans to mitigate these conditions are a critical part of the assessment.
- If substantial doubt remains, disclosure and potentially a modified opinion are required.
Memory trick: Going Concern: Doubt? Look at Management's Route!
Occurrence Assertion (Purchases)
Flip cardThe occurrence assertion for purchases states that all recorded purchase transactions and associated liabilities actually occurred and pertain to the entity during the reporting period. It is typically tested by vouching from the accounting records back to supporting documentation.
- Tests for occurrence typically involve vouching from the accounting records back to source documents.
- A common risk for occurrence is fictitious purchases or purchases recorded in the wrong period.
- Evidence includes purchase orders, vendor invoices, and receiving reports.
Memory trick: OCCURRENCE means RECORDED purchases REALLY HAPPENED.
Analytical Procedures
Flip cardAnalytical procedures involve evaluations of financial information through analysis of plausible relationships among both financial and non-financial data.
- Used at the planning stage, as substantive procedures, and at the overall review stage.
- Help identify unusual fluctuations or relationships that may indicate material misstatements.
- Can be performed at a high level or in detail.
Memory trick: Audit Procedures: Risk, Controls, Substantive (Details & Analytics).
Existence Assertion
Flip cardThe existence assertion states that assets, liabilities, and equity interests exist at a given date, and recorded transactions have occurred.
- For assets, it means they are real and on hand.
- Common procedures include confirmation, physical observation, and vouching.
- Directly addresses whether recorded amounts are valid.
Memory trick: CRADLE: Completeness, Rights, Accuracy, Disclosure, Existence, Valuation.
Control Deficiency (Cash Disbursements)
Flip cardA control deficiency exists when a control does not operate as designed or when a necessary control is missing, increasing the risk of material misstatement.
- Deviation from prescribed control procedures.
- Requires evaluation of severity (deficiency, significant deficiency, material weakness).
- Impacts the auditor's assessment of control risk.
Memory trick: A Broken Rule is a Flaw in the Control's Design.
Occurrence Assertion for Sales
Flip cardThe occurrence assertion for sales means that recorded sales transactions and events have actually occurred and pertain to the entity.
- Focuses on overstatement risk.
- Primary procedure: Vouching from records to source documents.
- Ensures transactions are valid and not fictitious.
Memory trick: Vouch OUT from the ledger to Prove it's REAL.
ADA for Management Override
Flip cardAudit data analytics (ADA) can be used to identify unusual or suspicious journal entries, which are often indicative of management override of internal controls.
- Focuses on patterns, trends, and anomalies that deviate from expectations.
- Can analyze large volumes of data efficiently.
- Helps identify entries made outside normal business hours, by unusual users, or to unusual accounts.
Memory trick: Data Detects Deception: Uncover the hidden, not just the obvious.
Auditing Inventory Obsolescence
Flip cardAuditing inventory obsolescence involves assessing whether inventory items are no longer marketable or useful due to technological changes, changes in customer demand, or other factors. Obsolete inventory must be written down to its net realizable value (NRV) if that is lower than cost.
- Obsolescence risk is higher in industries with rapid technological change or fashion trends.
- Auditors use a combination of procedures, including inquiry, observation, and analysis of sales data.
- The Lower of Cost or Net Realizable Value (LCNRV) rule is applied to value inventory.
- Inquiries with production and sales personnel are highly effective for forward-looking assessment.
Memory trick: To find OBSOLETE tech, TALK to the CREATORS and SELLERS.
Analytical Procedures for Completeness
Flip cardAnalytical procedures used to identify potential omissions or understatements in financial statement balances, often by comparing relationships between financial and non-financial data.
- Focus on detecting understatement (completeness assertion).
- Involve comparing recorded amounts to expected values or related accounts.
- Example: Comparing recorded sales to production data or shipping volumes.
Memory trick: PACT: Predict, Act, Compare, Trace.
Emphasis-of-Matter Paragraph
Flip cardAn emphasis-of-matter paragraph is included in an auditor's report to draw users' attention to a matter presented or disclosed in the financial statements that is fundamental to their understanding of the financial statements.
- Does not affect the auditor's opinion.
- Matter must be appropriately presented/disclosed.
- Used for going concern, special purpose frameworks, etc.
Memory trick: Report modifications: Opinions Change, Emphasis Highlights, Others Inform.
Limited Assurance (Review)
Flip cardLimited assurance, also known as negative assurance, is the level of assurance provided in a review engagement, stating that the practitioner is not aware of any material modifications needed for the financial statements to conform to the applicable framework.
- Expressed as 'nothing came to our attention...'.
- Less than reasonable assurance (audit).
- More than no assurance (compilation).
Memory trick: Assurance goes from None to Absolute (not really).
Review Report Conclusion
Flip cardA review report provides negative assurance, stating that the CPA is unaware of any material modifications needed for the financial statements to conform to the applicable framework.
- Limited assurance
- Negative assurance wording
- No opinion expressed
Memory trick: Review reports say 'unaware of issues,' not 'perfectly fair.'
Special Purpose Framework Reporting
Flip cardReporting on financial statements prepared using a special purpose framework requires an emphasis-of-matter paragraph in the auditor's report to draw attention to the framework used.
- Framework must be appropriate for the purpose.
- Emphasis-of-matter paragraph is mandatory.
- Paragraph refers to the note describing the framework.
Memory trick: Special Reports require Specific References.
Qualified Opinion Condition
Flip cardA qualified opinion is issued when financial statements contain a material misstatement that is not pervasive, or when there is a material scope limitation that is not pervasive.
- Misstatement is material
- Misstatement is NOT pervasive
- F/S are fair 'except for' the issue
Memory trick: Material but not Pervasive gets 'Qualified', Pervasive gets 'Adverse'.
Disclaimer of Opinion (Pervasive Scope Limitation)
Flip cardAn audit opinion issued when the auditor cannot obtain sufficient appropriate audit evidence to form an opinion on the financial statements due to a material and pervasive scope limitation.
- Issued when scope limitation is material and pervasive.
- Auditor states they do not express an opinion.
- Can result from client-imposed restrictions or circumstances beyond control.
Memory trick: Scope Limiter: Qualified if just a bit, Disclaimer if the whole picture's hit.
Compilation Report Modification (Departure)
Flip cardWhen a CPA identifies a material departure from the financial reporting framework in a compilation engagement and management refuses to correct it, the compilation report must be modified to disclose the departure.
- Applies to material departures in compilation engagements.
- Management's refusal to correct triggers the modification.
- The report is modified with a separate paragraph describing the departure.
Memory trick: Compilation's DEPARTURE: Describe It, Don't Opine.
SQCS No. 8 - Engagement Performance
Flip cardThe 'Engagement Performance' element of a CPA firm's system of quality control (SQCS No. 8) requires policies and procedures to ensure that engagements are performed in accordance with professional standards and regulatory requirements, including proper planning, supervision, and documentation.
- Includes policies for planning and supervising engagements.
- Requires review of engagement work, including significant judgments.
- Mandates appropriate documentation of the work performed and conclusions reached.
Memory trick: LEACH ME
Going Concern Emphasis-of-Matter
Flip cardAn emphasis-of-matter paragraph is added to an unmodified audit report when substantial doubt about an entity's ability to continue as a going concern exists, provided the issue is adequately disclosed in the financial statements.
- Issued with an unmodified opinion.
- Highlights a matter appropriately presented or disclosed in the financial statements.
- Used when substantial doubt about going concern exists.
Memory trick: When the company's future looks hazy, the auditor's report gets a 'heads-up' paragraph.
SPF Report Alert
Flip cardAn auditor's report on financial statements prepared under a Special Purpose Framework (SPF) must include an Emphasis-of-Matter paragraph to inform users that the framework is not GAAP.
- Required for SPF reports
- Alerts users to non-GAAP basis
- Identifies the specific SPF used
Memory trick: Special Purpose Frameworks Need Extra Attention Marked Clearly.
Agreed-Upon Procedures Report
Flip cardA report issued after performing specific procedures agreed upon by the practitioner and the engaging party, reporting only on the findings without providing an opinion or assurance.
- Provides no assurance (neither positive nor negative).
- Report lists procedures performed and findings.
- Distribution of the report is restricted to specified parties.
Memory trick: AUP Reports: Just the FACTS, For Restricted Access.
Examination Engagement
Flip cardAn attestation engagement in which the practitioner obtains a high level of assurance and expresses an opinion on the subject matter or assertion.
- Provides a high level of assurance.
- Results in an opinion (positive assurance).
- Involves extensive evidence gathering procedures.
Memory trick: ARE You Sure? (Assurance, Review, Examination)
Compliance Engagement
Flip cardA compliance engagement is an attestation engagement in which a practitioner reports on whether an entity has complied with specific aspects of laws, regulations, rules, contracts, or grants.
- Focuses on adherence to specific requirements.
- Can be either an examination or review level engagement.
- Requires criteria for compliance to be established.
Memory trick: Attest to the A-C-E of engagements.
Qualified Opinion
Flip cardAn audit opinion issued when financial statements are materially misstated or there's a scope limitation, but the effects are not pervasive to the financial statements as a whole.
- Used for material but not pervasive misstatements.
- Also used for material but not pervasive scope limitations.
- Indicates 'except for' the matter, the statements are fairly presented.
Memory trick: O-QAD: Opinions Qualify All Disclosures
Adverse Opinion on Internal Control
Flip cardAn adverse opinion is issued when an examination of internal control over financial reporting identifies one or more material weaknesses, indicating that the entity's internal control is not effective.
- Issued for one or more material weaknesses.
- Applies even if financial statements are not currently misstated.
- Permitted opinions for internal control are unmodified or adverse (or disclaimer).
Memory trick: A material weakness means the control 'factory' is broken, so the opinion is 'adversely' affected.
Client Acceptance - Auditability
Flip cardBefore accepting an audit engagement, the CPA firm must assess whether the client's financial statements are auditable, meaning sufficient appropriate audit evidence can be obtained to form an opinion.
- Involves assessing management's integrity and competence.
- Considers the availability of financial records and management's willingness to provide information.
- Determines if scope limitations would prevent expressing an opinion.
Memory trick: Can We Audit This Client Safely?
Other-Matter Paragraph Placement
Flip cardAn Other-Matter paragraph addresses matters other than those presented or disclosed in the financial statements that are relevant to users' understanding of the audit, the auditor's responsibilities, or the auditor's report, and has specific placement rules.
- Appears after Emphasis-of-Matter (if any).
- Otherwise, appears after Basis for Opinion.
- Does not affect auditor's opinion.
Memory trick: Report sections: Opinion, Basis, Emphasis, Other.
Audit Risk Model (ARM)
Flip cardThe Audit Risk Model (AR = IR x CR x DR) is used by auditors to plan the audit, determining the acceptable level of detection risk based on assessed inherent and control risks to achieve an acceptably low overall audit risk.
- AR: Overall audit risk (kept low).
- IR: Inherent risk (susceptibility to misstatement).
- CR: Control risk (failure of internal controls).
- DR: Detection risk (failure of auditor to detect misstatement).
Memory trick: Risk Balance: Inherent, Control, Detect.
Compilation Engagement Procedures
Flip cardA compilation engagement involves presenting financial information without expressing assurance, primarily requiring reading the financial statements for obvious material errors.
- No assurance expressed
- Limited procedures
- Read F/S for obvious errors
Memory trick: Compilations JUST ORGANIZE and READ for obvious mistakes.
Examination Assurance
Flip cardAn examination engagement provides reasonable assurance, the highest level of assurance expressed in attestation engagements.
- Highest level of assurance in attestation
- Requires extensive procedures
- Results in an opinion
Memory trick: Examine for Reason, Review for Limit, Compile for None.
Examination Engagement Assurance
Flip cardAn examination engagement provides a high level of assurance (reasonable assurance), expressed as a positive opinion on whether the subject matter, or the assertion about the subject matter, is fairly stated or effective.
- Highest level of assurance in attestation.
- Expressed as a positive opinion.
- Requires extensive evidence gathering.
Memory trick: Attest to the A-R-E of assurance.
Auditor's Report Date
Flip cardThe date on the auditor's report indicates the date on which the auditor has obtained sufficient appropriate audit evidence on which to base the auditor's opinion.
- Signifies completion of fieldwork.
- For comparative statements, it's the latest period's fieldwork completion.
- Auditor is responsible for events up to this date.
Memory trick: The report date is the 'finish line' of the fieldwork for the most 'current' statements.
Adverse Opinion
Flip cardAn adverse opinion states that the financial statements as a whole are not presented fairly in accordance with the applicable financial reporting framework, due to material and pervasive misstatements.
- Issued when misstatements are both material and pervasive.
- Indicates statements are not fairly presented.
- Highest level of modification for misstatements.
Memory trick: Opinions on financial statements depend on the 'Pervasive Problem'.
SPF Report Emphasis-of-Matter
Flip cardAn Emphasis-of-Matter paragraph in an audit report on special purpose financial statements draws attention to the note that describes the basis of accounting used, which is fundamental to users' understanding.
- Required for special purpose framework audits.
- Highlights the specific basis of accounting (e.g., cash basis, tax basis).
- Ensures users understand the framework, not a GAAP/IFRS presentation.
Memory trick: SPF Report: Opinion on *Special* Basis, EOM paragraph to *Explain* it.
Compliance Engagement (Examination)
Flip cardAn attestation engagement providing a high level of assurance on an entity's compliance with specified requirements, resulting in a positive opinion.
- Provides high level of assurance.
- Conclusion is an opinion (positive assurance).
- Involves extensive procedures to obtain sufficient evidence.
Memory trick: ARE You Concluding Right? (Agreed, Review, Examination)
Other-Matter Paragraph Use
Flip cardAn Other-Matter paragraph highlights a matter other than those presented or disclosed in the financial statements that is relevant to users' understanding of the audit, auditor's responsibilities, or the audit report.
- Relates to the audit or report itself
- Not required to be presented/disclosed in F/S
- Can include prior period audit or other reporting responsibilities
Memory trick: Emphasis is IN the F/S, Other is OUTSIDE the F/S.
Compilation Engagement
Flip cardA compilation engagement involves presenting management's financial information in the form of financial statements without expressing any assurance on them.
- No assurance provided.
- CPA is not required to verify information.
- Must read for obvious material misstatements.
Memory trick: Compile Carefully, Confirm Nothing.
Agreed-Upon Procedures Report Restriction
Flip cardAn agreed-upon procedures report is restricted in its distribution and use to only those parties who agreed to the procedures performed, as specified in the report.
- Report is restricted to specified parties.
- Does not provide an opinion or assurance.
- Summarizes findings from specific procedures.
Memory trick: An AUP report is like a secret handshake; only those in the club can see it.
Special Purpose Framework
Flip cardA financial reporting framework other than a general purpose framework, designed to meet the financial information needs of specific users.
- Examples include cash basis, income tax basis, regulatory basis, contractual basis.
- Reports require an emphasis-of-matter paragraph identifying the framework.
- Not intended for general public use.
Memory trick: If it's not GAAP/IFRS, and it serves a specific group, it's 'Special Purpose'.
Emphasis-of-Matter (Accounting Principle Change)
Flip cardAn Emphasis-of-Matter paragraph is included in an unmodified audit report to highlight a properly accounted for and disclosed change in accounting principle that is fundamental to users' understanding of the financial statements.
- Used for appropriately justified and disclosed accounting changes.
- Does not modify the auditor's opinion.
- Draws users' attention to the relevant disclosure in the financial statements.
Memory trick: Changes: If good, EOM paragraph; if bad, Modify Opinion.
Accounting Principle Change Reporting
Flip cardA justified and disclosed change in accounting principle results in an unmodified audit opinion, but requires an Emphasis-of-Matter paragraph to highlight its fundamental nature.
- Unmodified opinion is issued
- Change must be justified and disclosed
- Emphasis-of-Matter paragraph is required
Memory trick: Good changes are Unmodified, but get Emphasized.
Disclaimer of Opinion (Scope Limitation)
Flip cardA disclaimer of opinion is issued when the auditor is unable to obtain sufficient appropriate audit evidence, and the potential effects of this scope limitation on the financial statements are both material and pervasive, meaning no opinion can be expressed.
- Issued due to pervasive scope limitation.
- Auditor expresses no opinion.
- Highest level of modification for scope limitations.
Memory trick: Scope issues lead to Qualified or Disclaimed reports.
Unmodified Opinion with SPF
Flip cardAn unmodified opinion is issued when financial statements are presented fairly in accordance with a special purpose framework, but an emphasis-of-matter paragraph is added to highlight the framework used.
- Unmodified opinion expresses fairness under the SPF.
- Emphasis-of-matter is mandatory.
- Paragraph refers to the framework description note.
Memory trick: Special Frameworks need Special Attention.
Auditor's Response to Control Deficiencies
Flip cardUpon identifying internal control deficiencies, the auditor must evaluate their severity and impact on the audit, then modify audit procedures accordingly to obtain sufficient appropriate audit evidence.
- Severity determines classification: control deficiency, significant deficiency, material weakness.
- Significant deficiencies and material weaknesses must be communicated to management and those charged with governance.
- Impacts the nature, timing, and extent of substantive procedures.
Memory trick: Deficiency Found, Audit Adjusted.
Unmodified Opinion with Emphasis-of-Matter (Uncertainty)
Flip cardAn auditor issues an unmodified opinion but includes an Emphasis-of-Matter paragraph when there is a significant uncertainty (e.g., going concern, major lawsuit) that is adequately disclosed in the financial statements and does not result in a material misstatement.
- Opinion remains unmodified.
- Highlights a matter fundamental to users' understanding.
- Applies when uncertainty is adequately disclosed and does not cause a misstatement.
Memory trick: Uncertainty: Disclosed? EOM. Not disclosed? Modify Opinion.
Familiarity Threat
Flip cardA familiarity threat to independence arises when a close relationship exists between the CPA and the client, making the CPA too sympathetic to the client's interests or too accepting of the client's work.
- Can result from long association with client personnel.
- Can arise from family or close personal relationships.
- Requires safeguards to mitigate, such as rotation or independent review.
Memory trick: SAFE IS AIM.
Adverse Opinion Condition
Flip cardAn adverse opinion is issued when financial statements are materially misstated and the misstatements are also pervasive to the financial statements.
- Misstatement is material
- Misstatement is pervasive
- F/S are not presented fairly
Memory trick: Pervasive is Adverse, Material but not Pervasive is Qualified.
Auditor Response to Significant Risks
Flip cardFor significant risks, the auditor must perform substantive procedures that are specifically responsive to that risk, and may need to involve specialists, perform tests of controls if reliance is intended, and consider unpredictable audit procedures.
- Requires specific substantive procedures.
- May involve specialists for complex areas.
- Mandates evaluation of controls if reliance is planned.
Memory trick: Complex risk? Call in the experts and dig deep!
Inherent Risk (Non-Routine Transactions)
Flip cardNon-routine transactions are inherently riskier due to their complexity, infrequency, and the greater judgment and specialized accounting knowledge often required.
- Often lack established, automated controls.
- Require significant management judgment and estimation.
- May involve new or unusual accounting principles.
Memory trick: Non-routine means 'COMPLEX' and 'RISKY'.