Thanks for all those views, likes, follows, comments for my previous articles 'The Ultimate Guide to CA-Final', 'Subject wise tips to people appearing for Group-1' and 'CA Final SFM Tips for students appearing in May'17 Exams'. If anyone is reading my article for the first time please refer my previous 3 articles as I won't be repeating most of the things mentioned in my previous articles as current article is a continuation to my previous articles. Before I start about Auditing, I am mentioning some key issues which I realized while writing my pre-final exam for SFM yesterday in the revision exam batch I joined:
- Solve the problem using the same Units as used in question for example if the questions is given as amount in lakhs follow lakhs in answer also. This will avoid the time for conversion and confusion. Also you may commit error in writing zeroes, writing zeroes may degrade your handwriting look because in our zeal to write quickly our zeroes may sound like sprouting seeds which doesn't look good on the paper I reckon some special handwriting courses are there on how to write zero which shows the importance.
- Practice using the calculator with speed and accuracy. I can use the same without even looking at the buttons
- If you don't have time to answer all known questions in the end due to lack of time choose that question which you revised recently and takes less time.
- Don't carry the baggage of not writing the previous question perfectly on the next question. Even examiners are advised to value each question on an independent basis by ICAI.
Paper- 3: Advanced Auditing and Professional Ethics:
One of our core subjects and most students who did articles will have a practical exposure in auditing. The problem with auditing is not getting enough marks even though you attempted most of the questions.
The reasons for this may be because of the following reasons:
- Not writing the keywords
- Deviating from the language written in books
- Not studying all the chapters
- Lack of writing practice
- Over confidence in subject after dealing audit in articles
Whatever reference book you follow the following are mandatory:
PM+5 Suggested Answers+3 RTPs and MTPs
Chapter-wise Weightage & Analysis:
As per the trend of last 5 attempts I am dividing the whole syllabus into 3 parts:
Auditing Standards, Statements and Guidance Notes, Audit strategy, planning and programming, Risk Assessment and Internal Control, Company Audit, Audit report, Professional Ethics
- You will get questions for around 70 to 75 marks from the above chapters.
- So you have to get a minimum of 40 marks from these chapters.
- We already studied Auditing Standards in IPCC and also would have applied them in similar situations while doing articles so at the time of studying match the theory with your practical exposure and situations you faced which makes learning more easy and you can study in an entertaining way.
- The chapters Audit strategy, planning and programming, Risk Assessment and Internal Control are the based on auditing standards only so prepare them along with standards
- Don't skip any standard as we don't know exactly which standard will be asked in exam in one of the recent attempts 2 or 3 questions are asked from 800's which students usually ignore
- Read 600's perfectly as there only 3 standards and at least one question will be asked from it
- Try to read these standards at a time as they are inter-linked:
- Usually less number of questions will be asked from 800's, SRE, SAE, SRS so at least have a novel reading, you can't skip the other standards as they are very important
- Quote the standard number and name correctly or else you are going to lose marks. Practice by writing all the standard numbers and name at a time then re-check it, definitely for the first time you practice you will commit mistakes such as not remembering the number of some standards and words in some standards. It took me 5 times to write it exactly with minor mistakes
- Try to have a mnemonics for schedules in professional ethics. Don't skip other topics part from schedules like opening branch office etc. in which you may get 1 question.
Special audit techniques, liabilities of auditors, Audit Committee and Corporate Governance, Audit of Consolidated Financial Statements, insurance companies, co-operative societies, non-banking financial companies, Cost audit, audit of public sector companies, peer review
- You will get questions for around 25 to 30 marks from the above chapters.
- So you have to get a minimum of 15 marks from these chapters.
- Most the above chapters are not lengthy if compared to chapters mentioned in Part-C and they won't trouble you much during preparation and reading them will give value for your time and effort in terms of marks.
Audit under computerized information system (CIS) environment, audit of banks, Audit under Fiscal Laws, Special audit assignments, Internal audit, management and operational audit, Investigation and Due Diligence
- You will get questions for around 20 to 25 marks from the above chapters
- So you have to get a minimum of 5-10 marks from these chapters
- These are graded in Part-C because these chapters are lengthy and takes more time and less weightage and they may or may not be questions asked out of these chapters. For example, CIS is asked in 2 times out of 5 last attempts and being similar to ISCA people may get frustrated if question is not asked out of this after putting so much effort
- No need to by heart all the tax audit clauses if you don't have time left for study as I believe even partners of tax audit firms don't know the number of all the clauses as they usually verify some of the important clauses which I did during my articles, if you have time then do it.
I'll post my tips for Law on 7th April.