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My dear friends,

The purpose of this article is to help the students in CA IPCC Audit subjects & not to take any credit in any manner. It has been prepared in consultation with 2 of my friends Vakeel Ali & Gaurav Vibhute who have got 69 Marks each in IPCC Audit.

It has been prepared in 12 pages.

Thus I would require that the students should read it in free time & with free mind.

This article helps you to create interest in Audit subject & thereby score good in it.

This article has been prepared in parts.

These are as follows:

Part I – The Mind Set;
Part II – The Reading;
Part III – The Writing Tips;
Part IV – The Presentation; &
Part V – The Feedback.

In this article, the efforts have been made to help you to score at least 60 Marks in CA IPCC Audit.

However one part of this article also helps you to score in ANY THEORY SUBJECT INCLUDING IT & SM.

This helps you in every manner.

After reading this all the issues like

- What to read;
- How to read;
- Which study material to prefer;
- How to write;
- Presentation tips;
- To what extent read PM, RTP & Solved scanner; &
- Small Small but important tips etc.

Mostly be resolved.

Part I – The Mind set

We have been listening from our bosses & seniors & most of us has also been experienced that the subject Audit is difficult.

Believe me my friends IT IS NOT SO.

All those who experienced or believe that Audit is difficult, it may be because we don’t know the art of understanding Audit.

I personally know about 10 students who love Audit.

So what is there in them & Lacking in us?

It is believe that Audit subject is VERY EASY, SIMPLE & INTERESTING.

So before you start your Audit paper study, prepare your mind set that AUDIT SUBJECT IS VERY EASY & INTERESTING.

If you interact with the Audit, you will find it VERY EASY.

Part II – The Reading

Many students have a doubts like

What topics to cover;
What topics to put in an option;
Whether the marks & topic trend in the history will continue;
Which book to refer;
Whether to read from ICAI PM & RTP or not;  etc etc etc………

Now read the following carefully & fix it in your mind permanently.

a. In onder to score 60 or more in IPCC Audit or any subject, STRICTLY READ ALL THE TOPICS;


c. No one (EVEN ICAI) can guarantee that the marks & topic trend in the history will continue in an upcoming examination;

d. As per my opinion, V. K. Agrawal sir’s Audit book is the best. I personally referred this book in CA PCC. However I have not read Surbhi Bansal book or any other author’s book, thus not in a position to comment on it. Students may ask their friends who has used these books; &

e. Read any topic from your preferred book or notes, thereafter read & understand how beautifully the answers has been drafted in ICAI PM.

Let me share some tips that can help you to score better in Audit & ultimately help you to contribute in aggregate marks in second group of IPCC.

There are many minor but IMPORTANT TIPS that will help you.

a. You should have a good command over English Language;

b. Observe & Understand the KEY WORDS used in an answer like “Sufficient and Appropriate Audit Evidence”, use of word “Rather Than” etc……;

c. Note down those KEY WORDS & try to write the same key words in an answer; &

d. I am telling you very easily that if you use ICAI Language in Theory & Technical subjects, You can definitely score well.

Chapter wise discussion

Chapter 1) – Nature of Auditing;
Chapter 2) – Basics concepts in Auditing;
Chapter 3) – Preparation for an audit; &
Chapter 4) – Internal Control.

Above 4 Chapters contains Many Basic Concepts in Auditing.

Thus  an IPCC student should definitely read & understand these 4 Chapters.

Further, These chapters are having connection in CA Final.


Chapter 5) Vouching & Chapter 6)  Verification are easy & Interesting as well & practical approach has been followed in it.

Chapter 7) & 8) The Company Audit I & II – these 2 chapters are law based chapters.

Thus in order to become MASTER in these 2 chapters, you should have following qualities:

• Good command over English;
• Good command over Law;
• Follow the practical approach;
• Imagine the situation given before you; &
• Imagine yourself as an auditor.

Chapter 9) Special Audits – This covers the topics such as

• Audit of  government expenditure;
• Performance Audit;
• Audit of sanctions;
• Audit against Rules & Orders;
• Audit against provision of funds; &
• Propriety Audit.

For above types of audit, prefer to use the KEY WORDS used in the topic, this will help you to score good.

• Audit of NGO;
•Audit of Partnership Firm;
• Audit of Educational Institutions;
• Audit of Hotel;
• Audit of Hospital;
• Audit of sole proprietor;
• Audit of Theatre

For these topics the practical approach has been used.

Students will surely find these topics interesting & interacting.

For answering the question in these topics, you should first understand the nature of business & important areas.

More question may come like audit procedure.

Audit Procedure is something an auditor does or should do in order to do audit.

Audit Technique means how the Audit procedure is conducted.

Audit procedure for audit of Receivables may be as follows

• Vouch the Credit Sales Transaction;
• Vouch for payment received;
• Recompute the discount or any kind of concession if any;
• Pay Special attention towards Bad Debts; &
• Analyze whether any (or any additional) Provision for Doubtful Debts is required.

Now in order to perform audit procedure like Vouch the Credit Sales Transaction, Sampling & External Confirmations etc are audit techniques.

In short,

Audit Procedure means “What you have to do.” &

Audit Technique means “How you will do it.”

Chapter 10) Standards on Auditing – Average Marks 15.5 (Source – ICAI PM)

Read & Understand the objectives of Standards on Auditing.

If you do so, you will be able to understand the content of Standards on Auditing & you will get an answer why the Standard on Auditing has been drafted.

Most of the Standards on Auditing are such that if you understand their objectives, you can understand the Standards on Auditing easily.

Each Standard on auditing conveys the specific & unique message.

Try to understand that message & you will love Standards on Auditing.

Thus my suggestion is to read & understand ALL the Standards on Auditing applicable to IPCC.

LIST DOWN the important sections in Company Audit I & II on index page so that during one day before exam you can revise all of them quickly & you can refer only those where you are poor.

Read all the Topics of the syllabus since each topic has its own weight age.

In order to remember the SA number & SA name, some of the memory tips have been given as follows.

Please have a look on it also.

SA Memory Tip

SA 200 – Overall Objectives Of The Independent Auditor And The Conduct Of An Audit In Accordance With Standards On Auditing
MEMORY TIP :- There are TWO O in the beginning of the name. Thus TWO OO i.e. 200.

SA 250 – Consideration Of Laws And Regulations In An Audit Of Financial Statements
MEMORY TIP :- Audit of Companies Registered Under section 25 of the Companies Act, 1956.

SA 320 – Materiality In Planning And Performing An Audit
MEMORY TIP :- Everyone have 32 teeth to eat any MATERIAL.

SA 330 – The Auditor’s Responses To Assessed Risks
MEMORY TIP :- Divide the name into two parts

Part 1 – The Auditor’s Responses
Part 2 - To Assessed Risks

SA 402 – Audit Considerations Relating To An Entity Using A Service Organisation.
MEMORY TIP :- Section 420 of Indian Penal Code is for Forgery & Fraud etc. i.e. Chori

But the SA number is 402, thus Memory Tip (in HINDI) is Service Organisation thik se chor bhi nahi hai.

SA 450 – Evaluation Of Misstatements Identified During The Audit
MEMORY TIP :- 45 Years of Principal (Sir) has identified the misstatements during the audit.

SA 500 – Audit Evidence
MEMORY TIP :- Rs. 500 Currency note is an audit evidence.

SA 501 – Audit Evidence – Specific Considerations For Selected Items
MEMORY TIP :- SA 501 is one step ahead of SA 500.

SA 550 :- Related Parties
MEMORY TIP – Five fingers of one hand are totally related to five fingers of other hand.

Note – before starting SAs 600 series, these series are designed for “USING THE WORK OF OTHERS”

SA 610 :- Using The Work Of An Internal Auditor
MEMORY TIP – In Number SA 610, 1 is resembles as I, I for Internal Auditor.

SA 620 :- Using The Work Of An Auditor’s Expert
MEMORY TIP – 420 + 200. An Auditor Expert is 420 first of all.

SA 700 :- Forming an Opinion And Reporting On Financial Statements
MEMORY TIP :- you might have watched James Bond movie(s). His Number is 007.

700 is just opposite of 007. The Memory Tip is James Bond has formed ulta pulta opinion.

Part III – The Writing Tips

1. Topic – Vouching – In IPCC, the question often comes for vouching.

Average Marks – 9.7 (Source – ICAI PM)

You may write following points as common for all vouching type question.

• Occurrence – The auditor should see that the transaction took place during the period under audit.
• Completeness - The auditor should see that the transaction is complete & there is NO unrecorded transaction during the period under audit.
Transaction pertains to the entity under audit.
• Classification – that the transaction has been appropriately classified.
• Authority –Auditor should see that the transaction is authorized by the appropriate authority.
• Signature – that the voucher has been signed by the appropriate concern.

2. Topic – Verification  -  In IPCC, the question comes for Verification of Assets & Liabilities

 Average Marks – 9.3 (Source – ICAI PM)

You may write following points as common for all verification type question.

A. Assets or Obligation – If the question is for Assets – Assets is an Resource to the entity.

B. If the question is for Liabilities – The liability is an obligation.

C. Valuation – It has been appropriately valued as on the Balance Sheet date.

D. Pledge – Auditor should verify whether any assets has been pledge against any loan & If yes whether the same has been disclosed by the entity.

E. Physical Verification – The auditor should physically examine the asset.

F. 7 – 12 Extract for Land & Building.

3. After you finish your reading, close down your books & try to write answer for previous examination.

While writing answers, your objectives should be

On first writing – Accurate Answers,

On second writing – Accurate answers,

• Within time &
• Good presentation.

VERY IMPORTANT TO NOTE THAT the first writing may be after reading PM without setting time & without sitting in examination condition.

While during second writing – it should be under examination condition.

The question may arise in your mind that why writing practice.

The answer is the writing practice suggest you

• Writing speed,
• Handwriting.

Note that the handwriting needs not to be beautiful but at least it should be readable.

Conclusion – Writing practice teaches you to have a balance between Handwriting & writing speed.

Part IV – The Presentation

Present your paper in a unique form.

Some expert students & Famous faculties have given following tips that will help you.

Write answer point wise & avoid Paragraph writing answers.

Avoid short cut words.

Leave a separate line between two points.

Each separate sentence should start in a separate line.

Underline with a pencil the main body of the answer & also the conclusion.

Each sub – question should begin on a separate page,

There should be Heading to the answer & that heading of the answer should be BOLD & UNDERLINED.

The vertical line on the Right hand of the page needs not to be drawn.

It may be Imaginary. So you leave some space before your line comes to an end.

Moral – The presentation has good Marks.

Note  - Part IV of the article is also useful for all theory papers.

Please be helping hands & share the notes to the maximum number of students.

Part V  - The Feedback

I request you to kindly respond whether you like the above mentioned tips or not on the below mentioned e mail id.

It helps me to prepare & present the tips more effectively.

Thus it is ultimately beneficial for the students.

Also if you require any explanations on any of the above tips, you can feel free to ask me on my below mentioned e mail id.

You might have observed the presentation in this article.

Best of Luck for your EXAMINATIONS & FUTURE.

Thanks & Regards,
Ashwin Gyanchandani
E mail id –


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