Advising someone on how to go about preparing for auditing is a tricky affair as I had adopted a very risky strategy. Luckily the gambit worked for me. But the same may not work for you. Actually it all depends on the question paper. Audit would always involve some element of guesswork. Invariably, you will be forced to dream up answers in the examination hall. Can't help it dude! That is the way things go henceforth.
The chapters to be studied from the book by G Sekar are Professional Ethics It would be great if you could cite the applicable clause number in your answers. To remember that, one can prepare a chart that contains the 32-33 odd clauses.(You may leave behind your e-mail id in the comments section and I shall make an effort to send you the excel version which is more aesthetically soothing)
Otherwise check the link embedded at the end of this article...finally even the chart is on the Internet for your convenience..it has the contents but not the formatting which is also an integral part of the memory process. Even the notifications forming part of the Second Schedule segment on the cap on non-audit fees etc are also worth a read. They are asked very frequently in the exams. Company Audit I Company Audit II Audit Report From Company Audit, there are a lot of potential case studies that can be asked. Try mentioning the relevant section , say 227(3)(e) in the paper.
Maybe your effort may not necessarily translate into higher marks but it would certainly show your preparation in good light. Impression always helps a student to be marked on a higher scale by a fussy examiner, in a subjective paper like audit. You should also try drafting qualifications in Auditors Report. Quite a many of such situations are illustrated in the book. Questions based on the clauses of CARO are interesting and you will be able to relate them to your practical audit exposure. Also remember the applicability of CARO. Sometimes the questions are based simply on this aspect, say the "Turnover threshold" of Rs 5 crores.
They test whether you know that turnover includes sale of goods as well as services rendered, whether sales is taken as net of excise or not and stuff. Accounting Standards and the Guidance Notes will be covered by your Paper 1 preparation. And there are some 34-35 AAS.
Trust me they would not appeal to you much. They appear to be kind of esoteric when you read them. Moreover, the sheer volume would irritate. For starters, I think one should try to remember the AAS number and the title. There is a book by Snow White Publications that captures each AAS in the form of a flowchart/block diagram and the presentation is immensely helpful. One could go through the ICAI compiler to get a hang of the answering pattern which they expect in a question based on the AAS segment. Again if your communication skills are good..you can attempt the question to draft stuff like Engagement Letter, with references to the corresponding AAS contents forming an integral part of your answer. This is the technical stuff that needs to be studied.
You can comfortably attempt a substantial part of the paper, if you are well versed with the chapters mentioned above. The rest of the course is miscellaneous. Accha there is a topic Banking and Insurance. Honestly speaking, I simply left it. No point doing it. Because most of the times, they spring up new surprises from these topics: like verifying advances to a dot com company. And all the books like V K Agarwal delve on the past questions. To cover all potential questions, you need to study G Sekar. Can't comment on whether that's viable/feasible. Remember the clauses of Form 3CD of Tax Audit.Refer the scanner for what kind of questions can be expected from here. Get some general gyan on topics like Cost Audit, EDP audit, Stock Exchange, Due Diligence etc from any book you get include whatever you know in any answer you frame in the exam.
Be smart enough to ensure that you don't convey the impression that you are actually lacking depth in a particular segment. Also your articleship experience will also help in framing logical gupshup. Auditing is one paper where each student's face beams with smiles when he comes out. Because our education system has made us so used to filling pages with general crap. The examiner also understands that.He's been facing this since ages
CA. Anurag Singal secured All India Ranks 22 and 25 in CA Final and Inter respectively. He has authored the Book 'Auditing Mantras' for CA IPCC: http://www.auditingmantras.com/.
He can be contacted at email@example.com