Tips to score exemption in Audit paper

Dear Students and members

CA exam both final and I P C C results was declared . Congratulation for those who had cleared their exams and best of luck for those who fail the exam. I am giving some rescue plan for those who had failed their exam.

I am glad to invite all of your attention towards scoring  good mark in Audit paper. Today exam pattern were Purely practical , real time made and will test the knowledge of all the CA students.

1.    Important areas ( Be master)

More than 60 % of exam questions were based on the following areas. No compromise with these areas. Be through and excellent.

2.    Presentation part in exam.

Now a day exam questions are practical, real time made and twisting also. A silly mistake will be penalized greatly. This may cause failure in this paper.

Most of the paper has applications in more than one dimension. Say “Going concern” . You have to see where all this words hit and write according to the exam requirement.

Ø AS-1”Disclosure of Accounting Policies” explains the 3 fundamental assumptions of accounting which includes going concern. (AS-1”Disclosure of Accounting Policies” explains the 3 fundamental assumptions of accounting which includes going concern).

Ø Section 227(4A) CARO 2003 states that if the going concern of the enterprise has been affected the auditor has to report on the same.

Ø AS-4”Contingencies and events occurring after the balance sheet date (events occurring after the balance sheet date may indicate that the enterprise ceases to be a going concern)

Ø  As per SA Going Concern “states that an auditor needs to consider whether the enterprise has appropriately used the going concern assumption in the preparation in the balance sheet.

                 Example No 2 Relying on work of internal auditor

Ø Section 227(4A) Caro 2003 Point number 7 states that in the case of listed companies and/or other companies having a paid-up capital and reserves exceeding Rs.50 lakhs as at the commencement of the financial year concerned or having an average annual turnover exceeding five core rupees for a period of three consecutive financial years immediately preceding the financial year concerned, Whether the company has an Internal Audit system commensurate with its size and nature of its business.

Ø Basic Principals governing Audit “one of the principals laid down is internal control  (Internal Control = Internal Audit + Internal Check)

Ø  “Relying on the work of the internal auditor “in detail.

3.    Preparation of good notes, good number of revision before exam

All the best

CA Vivek M