CPA Exam mnemonics
The CPA Exam asks you to recall specific lists, and a handful of memory aids carry most of them. 8 that are worth the ten minutes, with what each one stands for and where it applies.
| Aid | For | Stands for | Applies to |
|---|---|---|---|
| GRaSPP | The five governmental fund types | General, special Revenue, debt Service, capital Projects, Permanent | GASB 54 |
| SE | The two proprietary fund types | internal Service, Enterprise | GASB 34 |
| CIPPOE | The four fiduciary fund types plus their custodial cousin | Custodial, Investment trust, Private-purpose trust, Pension and Other Employee benefit trust | GASB 84 |
| CRIME | The five COSO internal control components | Control environment, Risk assessment, Information and communication, Monitoring, Existing control activities | COSO |
| U-Q-A-D | The four audit opinions, least to most severe | Unmodified, Qualified, Adverse, Disclaimer | AU-C 705 |
| Reasonable, Limited, None | Assurance by engagement type | an Audit gives reasonable assurance, a Review gives limited assurance, a Compilation gives none | AR-C 60 |
| Existed / New | Subsequent events | Type 1 the condition Existed at the balance sheet date so adjust, Type 2 it is New so disclose | ASC 855 |
| CAVE CROP | The financial statement assertions | Completeness, Allocation and valuation, Existence, Rights and obligations, Cutoff, Occurrence, Presentation | AU-C 315 |
What does GRaSPP stand for on the CPA Exam?
GRaSPP is a memory aid for the five governmental fund types: General, special Revenue, debt Service, capital Projects, Permanent (GASB 54).
What does SE stand for on the CPA Exam?
SE is a memory aid for the two proprietary fund types: internal Service, Enterprise (GASB 34).
What does CIPPOE stand for on the CPA Exam?
CIPPOE is a memory aid for the four fiduciary fund types plus their custodial cousin: Custodial, Investment trust, Private-purpose trust, Pension and Other Employee benefit trust (GASB 84).
What does CRIME stand for on the CPA Exam?
CRIME is a memory aid for the five COSO internal control components: Control environment, Risk assessment, Information and communication, Monitoring, Existing control activities (COSO).
What does U-Q-A-D stand for on the CPA Exam?
U-Q-A-D is a memory aid for the four audit opinions, least to most severe: Unmodified, Qualified, Adverse, Disclaimer (AU-C 705).
What does Reasonable, Limited, None stand for on the CPA Exam?
Reasonable, Limited, None is a memory aid for assurance by engagement type: an Audit gives reasonable assurance, a Review gives limited assurance, a Compilation gives none (AR-C 60).
What does Existed / New stand for on the CPA Exam?
Existed / New is a memory aid for subsequent events: Type 1 the condition Existed at the balance sheet date so adjust, Type 2 it is New so disclose (ASC 855).
What does CAVE CROP stand for on the CPA Exam?
CAVE CROP is a memory aid for the financial statement assertions: Completeness, Allocation and valuation, Existence, Rights and obligations, Cutoff, Occurrence, Presentation (AU-C 315).
A mnemonic recalls a list. It does not tell you when the list applies, which is what the exam actually tests.