WORLD OF ACCOUNTANTS - CPA FORMULA SHEET
Review aid only. Confirm the current AICPA blueprint and authoritative guidance before relying on a rule.

AUD
Audit risk = Inherent risk x Control risk x Detection risk
Substantive response: change nature, timing, and extent to reduce detection risk.
Sampling risk: the sample conclusion differs from the conclusion from testing the entire population.
Material but not pervasive misstatement = qualified opinion.
Material and pervasive misstatement = adverse opinion.
Material but not pervasive scope limitation = qualified opinion.
Material and pervasive scope limitation = disclaimer of opinion.

FAR
Assets = Liabilities + Equity
Ending retained earnings = Beginning retained earnings + Net income - Dividends
Effective interest = Beginning carrying amount x Market yield
Cash interest = Face value x Stated coupon rate
Discount or premium amortization = Effective interest - Cash interest
Current ratio = Current assets / Current liabilities
Quick ratio = (Cash + Short-term investments + Receivables) / Current liabilities
Present value = Future cash flow / (1 + discount rate) ^ number of periods
Net present value = Present value of inflows - Present value of outflows

REG AND TCP
Realized gain or loss = Amount realized - Adjusted basis
Recognized gain may be limited by a nonrecognition rule.
Taxable income = Adjusted gross income - Deduction(s), subject to the applicable rules.
Tax = Tax from the applicable rate schedule - Credits, subject to credit limitations.
Outside basis after a distribution generally starts with basis, adds allocated items, and reduces for distributions under the applicable entity rules.
Loss sequencing questions require checking basis, at-risk, passive activity, and other applicable limits.

BAR
Contribution margin = Sales - Variable costs
Contribution margin ratio = Contribution margin / Sales
Break-even units = Fixed costs / Contribution margin per unit
Margin of safety = Actual or budgeted sales - Break-even sales
Price variance = Actual quantity x (Actual price - Standard price)
Quantity variance = Standard price x (Actual quantity - Standard quantity allowed)
Flexible budget variance compares actual results with the budget adjusted to actual activity.

ISC
Availability = Uptime / Required uptime period
Recovery point objective asks how much data loss is acceptable.
Recovery time objective asks how quickly service must be restored.
Control total reconciliation compares input counts or amounts with processed output.
Data quality dimensions: accuracy, completeness, validity, consistency, timeliness, and uniqueness.