Hello everyone! As a professor it’s very important to understand what material is being used for draftingpapers, understand the trend so that I can make students hit bulls’ eye. So we worked for many hours to give you accurate and path breaking analysis. So, this time ICAI has drafted tricky paper asmajority of the questions were new. This in contrast to old course where majority questions were from PM, Past Papers, RTPs & MTPs. These new questions were not very difficult, but point is students who relied just on past papers etc would find this paper challenging. But if you are good in conceptual knowledge, covered majority of concepts then paper wont pose big challenge.
You will be surprised to see many of below facts. (Paper was of 119 marks of which 30 were covered by MCQs, So we have around 89 Marks of descriptive questions)
Coverage of Various Topics
- Other Chapters had the majority weightage of around 39 Marks. (43%)
- Standards on Auditing covered 23 Marks. (26%)
- Professional Ethics covered14 Marks. (16%)
- Company Audit covered13 Marks. (15%)
Source of Paper
(Don’t add up below marks there is overlapping of the source)
- PM contributed to 27 Marks of the paper.(30%)
- If we consider the recent past papers, it contributes around 26 Marks. (29%, 5 Years)
- Considering the MTPs/RTPs, they contribute to around 22 Marks of the paper.(24%, 2 Years)
- Around 54 Marks of the paper constituted of new questions which were not covered in the PM, Past papers or MTPs/RTPs. Such questions required conceptual clarity. Therefore, it is very important for the students to understand that depending solely on the question bank would not suffice.(60%)
- Company Audit & PE together contributed to nearly 27 Marks, so students should have a good hold on the said areas.
- Descriptive & MCQs combined coverage of SAs is also good, it’s worth to spend more time on them.Also, to solve these questions, a good hold on the concepts is required.
- There were some direct questions asked from the other chapters & hence was the easy scoring area.
- Because of whooping 30 marks MCQs, importance conceptual clarity and coverage all concepts has increased manifold.
- A comprehensive coverage of the syllabus is the need of the hour.
Q2(b) - New Question from consolidation chapter, asked first time in exams, related to non-consolidation of subsidiary, where students were supposed to draft audit report. It was asked in May 18 RTP then Nov 18 RTP and then it came in May 19 Exams. So studying RTPs is very important
Q3(a) - Question on composition of board in corporate governance. Asked in exams first time, generally such questions were expected in law. But it was covered in study material.
Q3(c) - This question was from professional ethics. Students has to answer 2 things, first it is allowed to become advisor to issue and second it is not allowed to do underwriting.
Q4(a) - Now this question was on assessment & evaluation of control environment. Control environment is very famous term in SA 315. Question was not on what do you mean by control environment, it was on evaluation of control environment but answer in icai study material is not as per SA 315
Q4(b) - Case study on disqualification of auditor. Business relationship with company is disqualification but there are exemptions. This case is covered in exemption. (Hotel)
Q6(a) - Exemption from cost audit. Exports accounted for only 70%, for exemption it should have been exceeding 75%.
Q6(c) - CA Sant is a CA having COP, but he was neither partner nor employee of CA Pant. Hence CA Pant is guilty of misconduct as per Clause (1) of Part I of First Schedule to the Chartered Accountants Act 1949.
ANALYSIS ON THE BASIS OF MARKS DISTRIBUTION:
ANALYSIS ON THE BASIS OF DIFFICULTY:
Analysis and Suggested Answers of CA Final Audit (New Course) May 19 Exams by CA Ravi Taori
To enroll Advanced Auditing & Professional Ethics(CA Final New) subject of the author: Click here
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To view / download Suggested answers of CA Final Audit (New) Syllabus - May'19: /Click here