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Dear CA Aspirants, The most awaited article is here. Hope so, you are on high time of your exam preparations. Don't distract and stay focused. I suggest you that at regular intervals watch good movies to get refreshing yourself and stress free. I assure that all papers Strategy of CA Final will published in regular intervals and hope so, this series of articles will be completed by end of august months and for which i have already set targets. This article is bit lengthy, please bear with me.

Hello Friends, first of all, thanks a lot for giving such a favorable response to article on

1) "Success Mantra for CA Exam!!"
2) “Preparation Strategy for CA Final Financial Reporting!!”
3) “Preparation Strategy for CA Final SFM”

Now in the same manner I would like to throw light on preparation of very simple paper of CA Final i.e. Advanced Auditing and Professional Ethics. I have heard from many students that this is most complicated subject next to ISCA. Unfortunately , This is just a Myth. "Soch Badlo Exam ka result badlo. But frankly speaking, it isn’t. Just like every other subject, even audit can be handled. And it can be handled very well if you follow the right preparation strategy.

As we all know Audit is a very important and tricky paper for IPCC and Final level and responsible for student’s failure some times. To excel in Audit proper preparation and planning is very much required to avoid failure. Further Audit is a paper which requires a practical approach towards actual Audit work. According to me while studying audit paper you should consider yourself as an auditor and analyze and comment on the situation as an auditor.

I always try to help out students those who are in difficult positions. I can feel the pain when students failed in paper like audit where they have practical experience in articleship. The syllabus of advanced auditing is vast but it is interesting as you all have gained enough experience in articleship. " Rest in Peace Dummy Articles". Please do count the total number of pages before preparing for the paper.

I would like to give some guidance on CA final Audit Paper based on my experience.

About the subject (Initial thought):

Generally, The judgment of Students. So called tensions are given herein below:-

a) The subject is vast in syllabus and concepts and problems.

b) Question paper is very uncertain.

c) Much of Hard work is required to crack the subject.

Remedies to above tensions

a) When you will start studying, you realized that the subject is more on concepts and vast syllabus becomes quite manageable if you build strong understanding of concepts rather simply reading it.

b)  The size of the syllabus, it is quite vast in general but the syllabus prescribed by ICAI for testing in the examinations is quite less and concise than the general scope/particle experience of the subject.

c) Coming to the scope of subject the inputs should be entirely considered from the study material(ICAI) as well as referring to the class notes and any other reference material if you feel necessary.

Some students have been made a concept that Audit is all about SAs. But there a slight difference if you have analyzed this paper properly. According to me there are lot of small topics which are easier and can be prepared with 100% accuracy in short span of time. Rather than devoting timing on preparing on these said papers (and getting it half correct in exam hall) students can easily cover small topics in a short span of time (and score 40-50 marks with full accuracy).

How To Deal With Theory Papers (Extract from my previous article "Success Mantra for CA Exam!!"

Normally,  Most of students are facing failure in professional examination due to only theory papers. The main reason behind this is lack of concentration in theory paper along with poor presentation and writing skills or might be poor english.

For improved presentation and writing skills I would suggest you to refer answer presented by ICAI in their suggested answers/practice manual/revision test papers etc. Careful observation of ICAI suggested answers is very important. Along with good study focus and observation is also very important to succeed in professional examinations.

One more important thing if you are conceptually very clear and strong but not able to present it, then there is some problem indeed, which is required to be sorted out immediately. Good conceptual knowledge with good writing and presentation skill is the key to success.

Topic wise in order of preference (Except SAs):-

1. Professional Ethics

2. The Company Audit also covered AS too.

3. Audit Report

4. Audit of Banks

5. Audit Under Fiscal Laws

6. Special Audit Assignment

7. Audit under CIS

8. Risk Assessment and Internal Control

9. Audit of General Insurance Companies

10. Special Audit Assignments

11. Audit Strategy, Planning and Programming

12. Other Misc. topics

Special Attention to SAs:-

While starting, you can go to easy and interesting topic like Professional ethics, The company audit , Audit report etc. But never ignore or try to underweight SAs part, these cover 20-30 percentage of exam paper in paper 3 “Audit”.

SAs portion play a vital role in this paper. If nothing will work, then surely SAs will work in this paper. Weightage of SAs portion usually remains 20-30 marks, but generally we found definite 16 marks of theory in every term. You cannot skip it because it is the mandatory portion i.e. question no 1 (one). So, make your arrangement accordingly.

I personally recommend you to read SAs portion at least one hours on daily basis then only you can able to memories and able to write in exam hall. Otherwise SAs will sucks you. There are no definite questions from specific SAs in any term of exams. Unfortunately, No one can predict or assesses ABC analysis on SAs portion. "Strictly Don't gamble with SAs portion". The most students are failed only because of SAs portion.

The next topic is accounting standards. Just like the Accounts paper, practical questions relating to Accounting Standards are also asked in the Audit paper. You must have already covered this in the ‘Financial Reporting’ paper.

Please give special attention to SAs and ASs. Only good knowledge of SAs and ASs is not enough but you must understand the technique to apply SAs and ASs in audit practical problems. For this purpose refer ICAI Suggested answers and observe it.

ABC Analysis according to trend of marks allocations





Professional Ethics, The Company Audit, Audit Report, More stress on current amendments like Caro etc

40-50 Marks


SAs with AS, Audit of Banks, Audit Under Fiscal Laws, Special Audit Assignment, Audit under CIS,

Risk Assessment and Internal Control

50-60 marks


Audit of General Insurance Companies, Special Audit Assignments, Audit Strategy,

Planning and Programming, Other Misc. topics etc

10-20 marks

Effective Method Of Studies

Please understand the concept. The institute will not ask any irrelevant questions. All the questions are based on the concept. This correction you need to be made during the time of study. The clarity in the concept will help you for dealing such type of questions.

Following steps to be followed :-

Step No. 1

a) Need to have an Open mind and Understand the concept

b) First of all cover the topics mentioned in Category A & B thereafter focus on Category C. After covering the Category A & B , you would gain confidence on the subject. If you feel that you have a little space in time then accomplish the topics Category  C.

c) SAs portion can be prepared on daily basis. Recommend to study atleast one hour daily.

Step No. 2

Sources of Preparation/Books to be referred

a) Select a right/good book and Read it

Recommends books :- V.K.Agarwal, Pankaj Garg, Padhuka or any other book that you are comfortable with.

Note:- In my view, strictly avoid Surbhi bansal books because all topics are covered in very short way. Maximum/Most students read only surbhi bansal books for exam preparations and finally they awarded with negative results.

b) Read our so Called " Bhagavad Gita/ Bible/Quran " i.e Practice manual.

c) Read revision test papers, suggested answers for Past years, this will give you variety type of questions with answer writing pattern.


1) To understand the application of SA and AS in audit practical problems I would advise you to observe the application of SA and AS in the scanner solutions and ICAI suggested.

2) I personally recommend you to attempt Revision test papers, Suggested answers, Mock test papers at least one in a day. you will find variety of answers and you will never get disappointed in exam hall.

3) The above practice will consume your time. But if you are not doing in the above manner , you cannot able to handle the audit questions in the exam.

Step No. 3

Making a good notes of concept.

Step No. 4

Answer writing practice at home

You should test your preparation by attempting some previous exam paper, revisions test papers, mock test papers under ultimate exam condition or environment. Later on check the result of your effort and make necessary correction/modification to your study preparations. Strictly recommend for this paper.


1) It is also advisable to mention SA in audit paper wherever required just like sections. For example if some where going concern word is used in the context of Audit, you may mention the relevant AS no. where “going concern” is defined and explain the same if you have time.

2) As per my understanding audit is a paper requires lots of quick and logical application of mind to answer practical problems. Hence I’d suggest you to give a reading to ICAI audit study material to understand the depth and figure out the efforts and time required for preparation. By this kind of reading you may prepare a strategy for audit purpose.

3) Lack of good presentation especially in theory paper is one of the major drawbacks for most of the students. In theory subjects good presentation of theory is must along with mentioning case laws and sections etc. So I’d request you all to take note of the same and refer answers pattern from ICAI materials.

4) ICAI expects professional language from us. So, Start work on it.

Step No. 5

Make good Reading habits along with preparing notes habit otherwise you won't able to cover the syllabus.


1) While reading the chapters try to highlight the important line or mark appropriate headings and sub- heading. it will help you a lot in the last days of the exams to have a quick view.

Step No 6

The most part of preparation is Revision. So, Give ample emphasis to a good revision plan. There is nothing is this world which can substitute a good revision plan.


To Score high in this paper, Keep these points in your mind while preparing for this paper.

1) Use of proper and prescribed format for presentation.

2) After the FR & SFM exam, first and foremost, forget about the FR & SFM exam-it’s a sunk gain or sunk cost not relevant in decision making.

3) Do not answer the compulsory questions at the beginning of the exam. First answer easy and short questions and then devote time to tough questions.

4)  Try Avoid Point-wise/Bullet answers in examinations. ICAI wants answers in a proper format just alike music is just waste without required instruments. you may conclude your answers in precise points heading and sub-heading while writing in exam.

5)  In case of studies based questions, answer should be split in two parts. First one is fact of the cases and second one is the relevant concept and finally give your good conclusion. In this way the case study and application oriented theory questions can be handled.

6) It is also advisable to mention applicable Engagement Quality Control Standards or Accounting Standards or Sections in audit paper wherever required. Answer should be crisp, precise and to the point to secure good marks.

7) Days before examination date do not add any new topic in your schedule. Just focus on revision, revision and revision

8) Answer the questions with due emphasis on the provisions of SAs & ASs.

9) Go through each and every topic thoroughly and understand conceptual points supporting each topic.

10) If you failed more than three times, I prefer you to replace your all the old books with new books preferably  new authors.

11) Impress the valuator with the Starting answers. It should represent you caliber to give a good answer in all respects: content, neatness and presentation.

" First Impression is The Last Impression"

12) Avoid overwriting. Where they become inevitable, strike off and write again. Clarity is more important than neatness

13) If there is a question for which you do know the answer but do not have the time to write it fully, write a synopsis for the answer. This should be done, if required, only at the end of the answer sheet.

14) Underline key words in your answers. This is a must to enhance of your point being noticed by the valuator.

15) Avoid writing long and descriptive answers that take up yours as well as valuator time.

16)  In the case of law, if you are sure of the case laws and sections, provide these in the answer sheet. Bu in case of ambiguity, you may avoid, as a wrong quote is likely to have penalty. The same is true in the case of statistics for economics subject.

17) When you forget some points when writing the examination, leave some space and start a new answer. You can return later and complete the previous answer when you recollect the points.

18) Do not try to deceive the valuator in any subject. They are likely to be smarter than you, in which case the penalty will be high.

19) Try to mange two pens i.e. Blue and Black ink only in exam hall. Use black ink pen only for underling the key words of answers, for making columns and headings.

20) Before answering any question you need to make a rough solution in your mind and then go accordingly. No need to make hurry in papers like Audit and ISCA as one mistake may spoil your entire efforts. In Audit you won’t get amendments very frequently, so no need to worry about amendments etc.

21) Many students can't complete the paper due to slow writing speed. So boost up your handwriting speed

22) If you are facing unwanted failures then must obtain certified copies from ICAI and check your answers with suggested answers. You will find deficiencies.  

Your professional approach and qualitative effort is the key to pass CA examination. To be a successful chartered accountant you should be able to analyze and develop an understanding of topics and to be present in good manner.

"My personal view is that while studying audit paper you should consider yourself as an auditor and analyze and comment on the situation as an auditor, BE PRACTICAL and THINK LIKE A CA . .!!"

So that’s just about it! This is exactly what you have to do & more importantly, how you have to do it. I know you must feeling really good after reading all this but in order to get the desired results, its very important to follow the abovementioned steps and implement your study plans. Just reading all this, won’t do you any good. You’ll have to sit down, work hard & work smart. If you can stick to it, I’m damn sure you’ll definitely be able to score atleast 50 in the exam with minimum possible effort & time.

Further, if you will need any kind of help, please ping me thru mail.

I am working on next article on Preparation Strategy for LAW of CA Final Gr-I.


(Author can be reached at

Thanks and Regards
CA Pankaj K Agrawal 


Published by

CA Pankaj Kr Agrawal
(@Helping Hand)
Category Students   Report

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