for Advanced Auditing and
Professional Ethics, CA Final May 2015
Examination: A Checklist for 100% Syllabus
Coverage
1. Audit of Divisible Profits [Contained in the
Print Outs given in the Class]
2. Appointment, Disqualifications, Casual
Vacancy, Removal and Liabilities of Auditors
[Section 139 to Section 147 Contained in the
Print Outs given in the Class and dictation given
in the Class]
3. Appointment of Special Auditor u/s 233A of
Companies Act, 1956 and/ vis--vis
communication under Clause 8 Part I of First
Schedule of Chartered Accountants Act, 1949
(as amended) (See Class Notes)
4. Audit Strategy (Short Note) (see page 72 of
the Book)
5. Appointment of Internal Auditors [See
Section 138 dictation given in the Class]
6. CSR (see Section 135 contained in the Print
Outs given in the Class)
7. Corporate Form of Practice by CA
(Management Consultancy Company, i.e., MCC)
(see Class Notes) and KYC Norms (See Class
Notes)
8. New Disciplinary Mechanism (Distinction b/w
powers of Board of Discipline and Disciplinary
Directorate) (see Class Notes)
9. Clause 2, 3, 4, 5, 6, 7, 8, 9 and 12 of Part I,
First Schedule (see Class Notes)
10. Clause 7 and Clause 10 of Part I, Second
Schedule (see Class Notes)
11. Part IV and Part III of Schedule First and
Schedule Second respectively (see Class Notes)
12. Council General Guidelines 2008 under Code
of Ethics (see Class Notes)
13. Guidelines for Website by CA (see Class
Notes)
14. NFRA, Liabilities of Auditor under Other Laws
an overview (see pages 25, 26, 131 and 132 of
the Book)
15. Calculation of Turnover u/s 44AB (see page
134 of the Book)
16. Clause 12, 13, 14, 17 18, 21, 23, 26, 27, 28,
29, 30, 31, 33 34, 35, 40 and 41 of New Form
3CD (see page 139 of the Book)
17. Audit of Public Trusts (see page 146 of the
Book)
18. Cost Audit Applicability, Steps, True and Fair
cost of production, Contents of Cost Audit Report
(see Section 148 dictation given in the Class);
Note that Rule 7 of Cost Accounting and Audit
Rules, 2014, the requirement for cost audit shall
not be applicable to a company: whose export
revenue in foreign exchange > 75% of its total
revenue; or which is operating from a special
economic zone
19. Propriety Cost audit (see contents of cost
audit report dictated in the Class)
20. Management Audit and its objectives (see
page 157 of the Book)
21. Financial Audit vs. Management Audit vs.
Operational Audit vs. Internal Audit (see page
158 of the Book)
22. Types of Management Audit Reports (see
page 159 of the Book)
23. Basic elements of Internal Audit Report (see
page 162 of the Book)
24. Practical question on drafting Management
Control Questionnaire (MCQ) (general question
to be answered as per guidelines discussed for
Due Diligence Chapter)
25. Audit Trail (see Class Notes)
26. Approaches to EDP Audit (see Class Notes)
27. Service Bureau/ BPO (see SA 402, SAE 3402)
(see Class Notes print outs)
28. The objective and scope of audit does not
change in CIS environment. Comment (see Class
Notes)
29. Propriety Audit and its types (specially
objective and scope of PSU audit whether
different from statutory audit and Section
143(3)&(5) Questionnaire) (see para 3, page
176 of the Book)
30. Propriety Audit and Performance Audit (see
dictation under SA 200(R) given in the Class)
31. Investigation on behalf of Incoming Partner
(General Question: see Class Notes for Due
Diligence chapter)
32. Investigation for Advancing Loan (General
Question: see Class Notes for Due Diligence
chapter)
33. Section 134 of the Companies Act, 2013
requirements for Board of Directors explanation
about statutory auditors adverse remarks (see
Class Notes on Audit Reports)
34. Reporting about fraud u/s 143(12) [See
Class Notes]
35. Due Diligence and contents of DDR (Due
Diligence Review) Report (see Class Notes)
36. Risk Management Disclosures in Directors
Report [see page 34 of the Book]
37. Concurrent Audit, Corporate Debt
Restructuring and Credit Card Operations in a
Bank [(see Class Notes)]
38. AS 11, AS 17 and Banks (see Class Notes)
39. Donations made by Banks RBI
Requirements (see Class Notes)
40. NOSTRO and VOSTRO Accounts of Banks (see
Class Notes)
41. Solvency Margin (see Class Notes)
42. Valuation of Investments by General
Insurance Companies (see page 233 of the Book)
43. Reinsurance, Contents of Management
Report for GIC (see Class Notes)
44. NBFC vs. Banks (see Class Notes)
45. Classification of NBFC as per new guidelines
of RBI (see Class Notes)
46. Appointment and Powers of Auditor in
Cooperative Societies and Books of Accounts to
be maintained by Society (see Class Notes)
47. Borrowings and Loans for Cooperative
Societies (see Class Notes)
48. Appropriation of Profits, Overdue Principal
and Interest in case of Cooperative Societies
(see Class Notes)
49. Features of Indirect Tax Audit (see para 2
at page 321), Excise Audit 2000 (see page 322
of the Book)
50. Accounting Aspects for Mutual Funds
(specially the treatment of Underwriting
Commission and Unit Premium Reserve), Contents
of Audit Report (see Class Notes)
51. Whole Chapter on Members of Stock
Exchanges, specially Margins, Circuit Breakers,
Contract Notes, Types of Market in NEAT system,
Limit Orders, Types of Books and records,
Proprietary Trading (Beneficiary Account) and
Pool Trading (Pool Account), Contents of Audit
Report (see Class Notes)
52. SEBI Investigation for question 49 and 50
above (see Class Notes)
53. New definition of Independent Directors
under Clause 49 (see Class Notes)
54. CEO/ CFO certification and Management
Discussion and Analysis Report under Clause 49
(see Class Notes)
55. Whistle Blower Policy (vigil mechanism)
under Clause 49 (see Class Notes reference to
Company Law Paper for vigil mechanism)
56. Audit Committee (see Class Notes)
57. Energy Audit and Environmental Audit (see
page 338 to 340 of the Book)
58. Peer Review (see Class Notes)
59. SOX (Clause 49 known as Indian SOX) (see
Class Notes)
60. Clause 41 (see Class Notes)
61. SA 240, 315, 330, 500 & 501, 620, 580, 299,
520, 530, 570, 560, 540, 510, 710, 505, 700,
705, 720, SRS 4410, 4400, SRE 2400, SAE 3400,
SA 800 series (see Class Notes)
62. Drafting of (i) Letter of Engagement and
(ii) Management Representation Letter (see
Class Notes and page 432 for a very general
reference to format of MRL)
63. Guidance Notes: Independence of Auditors,
Section 227(3)(e) and (f) reporting,
Consolidation of Financial Statements (specially
the concept of permanent consolidated
adjustments and current consolidated
adjustments), Revision of Audit Report (see
Class Notes for all) plus Financial Information
in Offer Document (see page 586 and 587 of
Book)
64. Auditors Right to Lien (Short Note) (see
Class Notes; Hint: The auditors can exercise right
of lien on those books and records of the
clients, which came to his possession for the
purpose of audit examination, if his fees is not
paid by the client. But he has not right to
withheld audit report to be issued to the client
for non payment of his fees)
65. Auditors Obligation to attend Annual
General Meeting (Section 146) (see Class Notes)
66. Xerox copies of Books of accounts vis--vis
Auditors obligations (see SA 580)
67. From Company Law: Short Note on XBRL
Filing, Buy Back (see Class Notes)
68. May 2006, November 2010 Question Papers
and Practice Paper
Accounting Standards (see Financial Reporting
Syllabus) and Schedule III form the integral
part of Advanced Auditing and Professional
Ethics Paper