Introduction
1. Auditing is connected with Accounts. Auditing is an examination (Independent) of Financial information (Balance sheet & Profit and loss Account). The practical exposure gained during your practical training will be added advantages for this subject.
2. Standards governing Accounts (Accounting standards) and standards governing audit (SA) have good role in the audit paper.
Reference book
1. Padhuka (it is a Question and Answer format. Also contains RTP, suggested questions and answers)
2. Surbhi Bansal (point to point presentation)
Apart from these you can refer for practice manual.
Areas to be focused more:
1. SA
2. AS
3. CARO
4. Company Audit one and Two
5. Special audit
Basic area:
1. General chapter
2. Internal control and test check
3. Vouching of expense
4. Verification of expense
How to prepare (Suggestive only)
1. Good understanding of Both Standards (AS and SA)
Auditing subject is basically driven from the Standards on Audit and Accounting standards. Hence, a good learning of both the standards should have added advantages. There may be practical question set from both the standard.
2. Company Audit One and two
Good knowledge of relevant section of companies Act will be added advantages. Go through the bear act once. We can expect practical or case law model questions from this area.
3. Special audit
This is a miscellaneous area where audit of various kind of entities are covered.
Conceptual learning and documentation
Learn the concepts well, visualize the concepts and write the concepts in your note book in the point to point format.
Give a margin number for each point. If there necessary, give heading and sub heading.
Good Revision
Revise the subject in frequent intervals with the help of notes you have prepared as above.
Exam presentation
Interlinking points:
1. One particular question set in examination may be having implications in various places. Find out all such area and present it in one after another according to the importance. Please find the example as below.
2. Try to write point to point with heading and sub heading wherever applicable.
Example of interlinking answers:
Let us see the example of “Going concern” and its impacts in various places.
1. AS 1 Disclosure of Accounting policies
Going concern is a one of the assumption. The enterprise is viewed as going concern. Neither intention nor necessity to shutting down the business or materially scale down its operations.
2. Section 224 (A) CARO report
If the going concern of the enterprise has been affected, auditor has to report the same.
3. AS 4 Contingencies and events occurring after Balance sheet date
Events occurring after balance sheet date may indicate that the enterprises ceases to be going concern.
4. SA 570 Going concern
An auditor need to consider whether the enterprise has approximately used the going concern assumptions in the preparation of financial statement.
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