Anil Sankar V (CA) (1877 Points)
17 October 2011Dear friends,
the attached file consists of important topics to be reffered in auditing for CA final NOV 2011 which is sent by ganapthy sir to email id . it will be very useful for prepartion.
all the best.
Anil Sankar V
(CA)
(1877 Points)
Replied 17 October 2011
FACULTY: S.GANAPATHY B.Com., F.C.A., Grad. C.W.A.
Phone: 9382741962, 044-24728916
Email: ganapathy.swaminathan @ yahoo.in
I HAVE MADE MY BEST EFFORT TO PROVIDE THE AREAS IN ADVANCED AUDITING WHICH ARE IMPORTANT FOR NOVEMBER 2011 EXAM. I HOPE THIS MATERIAL WILL BE HELPFUL IN YOUR PREPARATION. IF YOU HAVE ANY DOUBTS DO NOT HESISTATE TO MAIL ME AT ANY TIME IN MY E-MAIL ID GIVEN ABOVE.
WISH YOU ALL THE BEST FOR YOUR EXAM.
FACULTY- AUDITING
MOST IMPORTANT:
1) THE CHARTERED ACCOUNTANTS (AMENDMENT) ACT, 2006 IS VERY IMPORTANT FOR CHAPTER-22 ON PROFESSIONAL ETHICS
2) PRACTICAL QUESTIONS ON COMPANY AUDIT AND ACCOUNTING STANDARDS ARE VERY IMPORTANT
3) NEW STANDARDS SAs ARE VERY IMPORTANT FOR THE EXAM.
1. REVISED AND NEW STANDARDS ON AUDITING (important)
a. SA-200 (Revised) - Overall Objectives of the Independent Auditor and Conduct of Audit in accordance with Standards on Auditing
b. SA-250- Revised- Auditor’s Responsibilities Relating to Laws and Regulations
c. SA-260- Revised- Communication with Those Charged with Governance
d. SA-315- NEW STANDARD-VERY IMP.-Identifying and Assessing Risks of MM
e. SA-320- Revised- Materiality in Planning and Performing an Audit
f. SA-330- NEW STANDARD-VERY IMP-Auditor’s Responses to Assessed Risks
g. SA-500- Audit Evidence
h. SA-510- Revised -Initial Audit Engagements- Opening Balances
i. SA-550- Revised- Related Parties
j. SA-560- Revised -Subsequent Events
k. SA-570- Revised -Going Concern
l. SA-580- Revised- Written Representations
m. SA-610- Revised- Using the Work of Internal Auditors
n. SA-620- Revised- Using the Work of an Auditor’s Expert
o. SA-700- Revised- Forming an Opinion, Form and Content of Financial Statements
p. SA-705- NEW- Modifications to Auditor’s Opinion
q. SA-706- NEW- Emphasis of Matter Paragraph and Other Matter Paragraph
2. AS-1, 4, 5, 9, 10, 11, 12, 13, 16, 18, 22, 26, 29 (Revise previous years exam questions on AS since some of them may be repeated)- Applicability of these standards, Exceptions, Treatment of special items, Disclosure aspects of these standards are important for auditing
3. Guidance Notes
a. Section 227(3) (e), (f)
b. Proposed Dividend
c. Audit of Capital and Reserves
d. Audit of Payment of Dividends
4. AUDIT IN A CIS ENVIRONMENT
a. Impact of Computers on Internal Controls
b. Impact of Computers on Auditing
c. Special Audit Techniques- Audit Software, Considerations in the use of CAAT
d. Procedures for Controlling the Application CAAT
5. SPECIAL AUDIT TECHNIQUES
a. Methods of Obtaining Audit Evidence
b. Analytical Procedures
c. Audit Risk
d. Sampling Risk
e. Materiality and Audit Risk
f. Risk Based Audit (RBA)
6. Company Audit-
i) Ceiling on company audits- Council General Guideline under Code of Ethics
ii) Auditor appointed in AGM failing to accept appointment
iii) True and Fair-to be read with Significance of True and Fair
iv) Exemption from Branch Audit
v) Statutory Auditor in relation to Branch Accounts & Branch Auditor (SA-600)
vi) Gist of CLB Circulars
vii) Personal expenses of Directors (connected with Sec 227(1A)(e)
viii) Preparation and Presentation of Final Accounts (Section 211)
ix) Divisible profits, dividends and reserves- Distribution of capital profits, Capital Reserve (Reserves)- very important
b. Chapter 8 - Auditor’s Report
i) SA-700 Revised, SA-705 New & SA-706 New
ii) Matters under section 227(3) – Facts and Opinions
iii) Inquiry under section 227(1A)
iv) Directors Comments u/s 217(3) (exception in case of comments in C&AG Report)
v) Distinguish between Audit Report and Certificate
vi) CARO Reporting Requirements- Statement on CARO is very important- Exemption of Private Limited company from CARO- Reporting clauses 1(c), 2(b), 4, 7, 9, 10, 13, 14, 15, 16, 17, 21- Council’s comments under clauses in Statement on CARO
7. Corporate Governance
Revised clause 49 of the listing agreement– Chapter-9 is very important including Audit Committee, Annexure containing SEBI circulars on clause 49- Composition of Board and Definition of Independent Director (important)
8. Audit of Consolidated Financial Statements
Auditor’s Responsibility, Permanent consolidation adjustments, Current consolidation adjustments
9. BANK AUDIT
a. Appointment of Auditor, Audit Report (LFAR important)
b. Evaluation of Internal Controls (Bills for Collection, BP/BD, Advances, Credit Card)
c. CRR, SLR, Money at Call and at Short Notice
d. Audit of Investments – Prudential Guidelines regarding market portfolio- Master circular (Latest-Revised in 2009) (Held to Maturity, Held for Trading, Available for Sale)- Non-Performing Investments – Non-Performing Investments
e. Prudential norms for NPA classification, income recognition, asset classification, Provisioning Norms, Verification of Stock exchange and other securities, Life Insurance Policies, Bank’s Own Certificates, Third Party guarantees- Verification of Bills Purchased and Discounted
f. Contingent liabilities (Verification of six items under Contingent liabilities)
g. Concurrent Audit system-Scope of Concurrent Audit- Coverage of branches and Reporting systems
h. Capital Adequacy norms- Tier-I capital funds and Tier-II capital funds
10. AUDIT OF GENERAL INSURANCE COMPANIES
a. Requirements of Schedule B to the IRDA Regulations, 2000- Part-I Accounting Principles – Part-IV-Contents of Management Report - Audit Considerations
b. Schedule-C-Form of Auditor’s Report
c. Verification of Claims Paid
d. Verification of Commission
e. Verification of Operating expenses of the Management
f. Verification of Outstanding Premiums and Agents Balances
g. Verification of Investments - sections 27B, 27C, 27D
h. Facultative and Treaty Re-insurance (Proportional and non-proportional treaties not important)
i. Co-insurance – Incoming and Outgoing
j. Solvency Margin
11. Audit of Co-operative societies
Special Features of Co-operative Audit, Rights and Duties of Co-operative Auditors
12. Audit of Non-Banking Financial Companies
a. Classification of NBFC
b. Registration with RBI
c. NBFC Public Deposits Directions
d. NBFC Prudential Norms Directions
e. Audit Check List- Investment, Loan, Hire Purchase, Equipment Leasing Companies
f. New Reporting Requirements prescribed regarding Auditor’s Report to the Board of Directors – issued in 2008 – Refer to January 2011 Edition of Institute Study Material
g. Obligation to Report to RBI
13. Tax Audit
Audit of Public Trusts- Audit u/s 44AB- Accounting Standards, Audit Reports, Form 3CD clauses 11,12,13,17,21,25,26,27,32 - Audit under VAT important
14. Audit of Members of Stock exchanges-
a. Margin Deposits
b. Rolling Settlement
c. Circuit Filter and Circuit Breaker
d. Books of Accounts to be maintained under Rule 15 by a member
e. Contract Notes- Verification of contract notes
15. AUDIT OF PSU
C&AG Powers u/s 619(3) & (4) - Audit Report of C&AG
16. PROPRIETY AUDIT
Propriety elements in 227(1A), Propriety elements in CARO 2003, Problems in Propriety Audit
17. INVESTIGATION
Special Issues in Investigation –
Non-statutory Investigations
18. Peer Review-
Definition, Objectives, Scope (Focus), Execution Stage, Reporting Stage
19. Internal Audit, Management Audit and Operational Audit
Internal Audit- Relationship between External and Internal Auditor, General Evaluation and Specific Evaluation
Management Audit and Operational Audit
a. Behavioral Problems in conducting Management audit & solutions to overcome such problems
b. Broad objectives of Operational Audit
20. Professional Ethics (CA AMENDMENT ACT 2006 VERY IMPORTANT)
a. Section 2(2) -Definition of Management Consultancy Services and Sections 8, 27 and Other Misconduct (Very important)
b. First Schedule- Part-I- clauses 2, 3, 4, 6 7, 8, 9, 11 (New Regulations 53A and Regulation 53B, Regulation 191 and Regulation 190A (Revised in 2004- VERY IMPORTANT),
c. First Schedule- Part-II- clause 2
d. First Schedule- Part-III- clauses 2
e. Second Schedule-Part-I-clause 1- Role of C.A. in relation to Unlawful acts of his clients, clauses 4, 5, 6, 7, 10- (Case laws under clauses 5,6,7)
f. Second Schedule-Part-II-clauses 1, 3, (Case laws under clause 1)
g. Council’s General Guidelines, 2008- Chapter IV to Chapter X is important (Chapter XII has been recently deleted and in Chapter IV the definition of “relative” has been amended which is now as defined in AS-18
h. Latest Council guidelines regarding advertisement through write up issued in May 2008
i. Latest Council Notification No.116 of 2008 issued on 25th September 2008 which includes new Regulation 53A and Regulation 53B which is relevant for clauses 2,3,4,5 of Part-I of First Schedule
j. Decisions of Ethical Standards Board under clause 11 and clause 4.
21. Sarbanes Oxley Act, 2002
Eleven Titles under SOX, Internal Controls (Section 302) and PCAOB Overview and Functions, Purpose of Internal Control over Financial Reporting and Procedures of Internal Control over Financial Reporting (end of Chapter -3 in Annexure-II)
20. PROBABLE SHORT NOTES QUESTIONS
(Certain short notes questions, which are already covered in the respective chapters given above, have not been repeated here)
a. Professional Skepticism (SA-200 & SA-240)
b. Audit Risk, Inherent Risk, Control Risk, Detection Risk (SA-200(R), Audit in a Risk based Environment (Chapter 5)
c. Written Representations (SA-580)
d. Unmodified Opinion, Qualified Opinion, Disclaimer of Opinion, Emphasis of Matter and Other Matter (SA-700, SA-705, SA 706)
e. Company Audit- Personal expenses of Directors, Capital Reserves, Interim Dividend, Non-provision for Proposed Dividend, Non-provision for tax liability
f. Qualified and Independent Audit Committee, Audit Committee u/s 292A (Chapter-9)
g. Report on Corporate Governance (Chapter-9)
h. Special Report to the Registrar of Co-operative societies (Point No.8 in Special Features in Co-operative Audit)
i. Audit and Investigation
j. Audit of Members of Stock Exchange – refer to points given earlier
k. SA-570- Financial, Operating and Other Indications
l. EDP Audit- Black Box and White Box Approach
1. All the areas given in this attachment are based on LATEST EDITION of Institute Study Material (2011 Edition is updated in Revised SAs and many other chapters)
2. Do not answer questions 1 and 2 at the beginning of the exam. First answer two or three direct and simple questions before attempting questions 1 and 2 which are practical.
3. Present the answers point-wise and avoid paragraph-wise presentation.
4. Examples and illustrations given in Chapters are important for practical questions.
ONCE AGAIN I WISH YOU THE VERY BEST FOR YOUR EXAMS. I REQUEST YOU TO CONTACT ME THROUGH EMAIL REGARDING YOUR EXPERIENCE IN ATTENDING THE AUDITING EXAMINATION.
CA S.GANAPATHY
FACULTY: S.GANAPATHY B.Com., F.C.A., Grad. C.W.A.
Phone: 9382741962, 044-24728916
Email: ganapathy.swaminathan @ yahoo.in
I HAVE MADE MY BEST EFFORT TO PROVIDE THE AREAS IN ADVANCED AUDITING WHICH ARE IMPORTANT FOR NOVEMBER 2011 EXAM. I HOPE THIS MATERIAL WILL BE HELPFUL IN YOUR PREPARATION. IF YOU HAVE ANY DOUBTS DO NOT HESISTATE TO MAIL ME AT ANY TIME IN MY E-MAIL ID GIVEN ABOVE.
WISH YOU ALL THE BEST FOR YOUR EXAM.
FACULTY- AUDITING
MOST IMPORTANT:
1) THE CHARTERED ACCOUNTANTS (AMENDMENT) ACT, 2006 IS VERY IMPORTANT FOR CHAPTER-22 ON PROFESSIONAL ETHICS
2) PRACTICAL QUESTIONS ON COMPANY AUDIT AND ACCOUNTING STANDARDS ARE VERY IMPORTANT
3) NEW STANDARDS SAs ARE VERY IMPORTANT FOR THE EXAM.
1. REVISED AND NEW STANDARDS ON AUDITING (important)
a. SA-200 (Revised) - Overall Objectives of the Independent Auditor and Conduct of Audit in accordance with Standards on Auditing
b. SA-250- Revised- Auditor’s Responsibilities Relating to Laws and Regulations
c. SA-260- Revised- Communication with Those Charged with Governance
d. SA-315- NEW STANDARD-VERY IMP.-Identifying and Assessing Risks of MM
e. SA-320- Revised- Materiality in Planning and Performing an Audit
f. SA-330- NEW STANDARD-VERY IMP-Auditor’s Responses to Assessed Risks
g. SA-500- Audit Evidence
h. SA-510- Revised -Initial Audit Engagements- Opening Balances
i. SA-550- Revised- Related Parties
j. SA-560- Revised -Subsequent Events
k. SA-570- Revised -Going Concern
l. SA-580- Revised- Written Representations
m. SA-610- Revised- Using the Work of Internal Auditors
n. SA-620- Revised- Using the Work of an Auditor’s Expert
o. SA-700- Revised- Forming an Opinion, Form and Content of Financial Statements
p. SA-705- NEW- Modifications to Auditor’s Opinion
q. SA-706- NEW- Emphasis of Matter Paragraph and Other Matter Paragraph
2. AS-1, 4, 5, 9, 10, 11, 12, 13, 16, 18, 22, 26, 29 (Revise previous years exam questions on AS since some of them may be repeated)- Applicability of these standards, Exceptions, Treatment of special items, Disclosure aspects of these standards are important for auditing
3. Guidance Notes
a. Section 227(3) (e), (f)
b. Proposed Dividend
c. Audit of Capital and Reserves
d. Audit of Payment of Dividends
4. AUDIT IN A CIS ENVIRONMENT
a. Impact of Computers on Internal Controls
b. Impact of Computers on Auditing
c. Special Audit Techniques- Audit Software, Considerations in the use of CAAT
d. Procedures for Controlling the Application CAAT
5. SPECIAL AUDIT TECHNIQUES
a. Methods of Obtaining Audit Evidence
b. Analytical Procedures
c. Audit Risk
d. Sampling Risk
e. Materiality and Audit Risk
f. Risk Based Audit (RBA)
6. Company Audit-
i) Ceiling on company audits- Council General Guideline under Code of Ethics
ii) Auditor appointed in AGM failing to accept appointment
iii) True and Fair-to be read with Significance of True and Fair
iv) Exemption from Branch Audit
v) Statutory Auditor in relation to Branch Accounts & Branch Auditor (SA-600)
vi) Gist of CLB Circulars
vii) Personal expenses of Directors (connected with Sec 227(1A)(e)
viii) Preparation and Presentation of Final Accounts (Section 211)
ix) Divisible profits, dividends and reserves- Distribution of capital profits, Capital Reserve (Reserves)- very important
b. Chapter 8 - Auditor’s Report
i) SA-700 Revised, SA-705 New & SA-706 New
ii) Matters under section 227(3) – Facts and Opinions
iii) Inquiry under section 227(1A)
iv) Directors Comments u/s 217(3) (exception in case of comments in C&AG Report)
v) Distinguish between Audit Report and Certificate
vi) CARO Reporting Requirements- Statement on CARO is very important- Exemption of Private Limited company from CARO- Reporting clauses 1(c), 2(b), 4, 7, 9, 10, 13, 14, 15, 16, 17, 21- Council’s comments under clauses in Statement on CARO
7. Corporate Governance
Revised clause 49 of the listing agreement– Chapter-9 is very important including Audit Committee, Annexure containing SEBI circulars on clause 49- Composition of Board and Definition of Independent Director (important)
8. Audit of Consolidated Financial Statements
Auditor’s Responsibility, Permanent consolidation adjustments, Current consolidation adjustments
9. BANK AUDIT
a. Appointment of Auditor, Audit Report (LFAR important)
b. Evaluation of Internal Controls (Bills for Collection, BP/BD, Advances, Credit Card)
c. CRR, SLR, Money at Call and at Short Notice
d. Audit of Investments – Prudential Guidelines regarding market portfolio- Master circular (Latest-Revised in 2009) (Held to Maturity, Held for Trading, Available for Sale)- Non-Performing Investments – Non-Performing Investments
e. Prudential norms for NPA classification, income recognition, asset classification, Provisioning Norms, Verification of Stock exchange and other securities, Life Insurance Policies, Bank’s Own Certificates, Third Party guarantees- Verification of Bills Purchased and Discounted
f. Contingent liabilities (Verification of six items under Contingent liabilities)
g. Concurrent Audit system-Scope of Concurrent Audit- Coverage of branches and Reporting systems
h. Capital Adequacy norms- Tier-I capital funds and Tier-II capital funds
10. AUDIT OF GENERAL INSURANCE COMPANIES
a. Requirements of Schedule B to the IRDA Regulations, 2000- Part-I Accounting Principles – Part-IV-Contents of Management Report - Audit Considerations
b. Schedule-C-Form of Auditor’s Report
c. Verification of Claims Paid
d. Verification of Commission
e. Verification of Operating expenses of the Management
f. Verification of Outstanding Premiums and Agents Balances
g. Verification of Investments - sections 27B, 27C, 27D
h. Facultative and Treaty Re-insurance (Proportional and non-proportional treaties not important)
i. Co-insurance – Incoming and Outgoing
j. Solvency Margin
11. Audit of Co-operative societies
Special Features of Co-operative Audit, Rights and Duties of Co-operative Auditors
12. Audit of Non-Banking Financial Companies
a. Classification of NBFC
b. Registration with RBI
c. NBFC Public Deposits Directions
d. NBFC Prudential Norms Directions
e. Audit Check List- Investment, Loan, Hire Purchase, Equipment Leasing Companies
f. New Reporting Requirements prescribed regarding Auditor’s Report to the Board of Directors – issued in 2008 – Refer to January 2011 Edition of Institute Study Material
g. Obligation to Report to RBI
13. Tax Audit
Audit of Public Trusts- Audit u/s 44AB- Accounting Standards, Audit Reports, Form 3CD clauses 11,12,13,17,21,25,26,27,32 - Audit under VAT important
14. Audit of Members of Stock exchanges-
a. Margin Deposits
b. Rolling Settlement
c. Circuit Filter and Circuit Breaker
d. Books of Accounts to be maintained under Rule 15 by a member
e. Contract Notes- Verification of contract notes
15. AUDIT OF PSU
C&AG Powers u/s 619(3) & (4) - Audit Report of C&AG
16. PROPRIETY AUDIT
Propriety elements in 227(1A), Propriety elements in CARO 2003, Problems in Propriety Audit
17. INVESTIGATION
Special Issues in Investigation –
Non-statutory Investigations
18. Peer Review-
Definition, Objectives, Scope (Focus), Execution Stage, Reporting Stage
19. Internal Audit, Management Audit and Operational Audit
Internal Audit- Relationship between External and Internal Auditor, General Evaluation and Specific Evaluation
Management Audit and Operational Audit
a. Behavioral Problems in conducting Management audit & solutions to overcome such problems
b. Broad objectives of Operational Audit
20. Professional Ethics (CA AMENDMENT ACT 2006 VERY IMPORTANT)
a. Section 2(2) -Definition of Management Consultancy Services and Sections 8, 27 and Other Misconduct (Very important)
b. First Schedule- Part-I- clauses 2, 3, 4, 6 7, 8, 9, 11 (New Regulations 53A and Regulation 53B, Regulation 191 and Regulation 190A (Revised in 2004- VERY IMPORTANT),
c. First Schedule- Part-II- clause 2
d. First Schedule- Part-III- clauses 2
e. Second Schedule-Part-I-clause 1- Role of C.A. in relation to Unlawful acts of his clients, clauses 4, 5, 6, 7, 10- (Case laws under clauses 5,6,7)
f. Second Schedule-Part-II-clauses 1, 3, (Case laws under clause 1)
g. Council’s General Guidelines, 2008- Chapter IV to Chapter X is important (Chapter XII has been recently deleted and in Chapter IV the definition of “relative” has been amended which is now as defined in AS-18
h. Latest Council guidelines regarding advertisement through write up issued in May 2008
i. Latest Council Notification No.116 of 2008 issued on 25th September 2008 which includes new Regulation 53A and Regulation 53B which is relevant for clauses 2,3,4,5 of Part-I of First Schedule
j. Decisions of Ethical Standards Board under clause 11 and clause 4.
21. Sarbanes Oxley Act, 2002
Eleven Titles under SOX, Internal Controls (Section 302) and PCAOB Overview and Functions, Purpose of Internal Control over Financial Reporting and Procedures of Internal Control over Financial Reporting (end of Chapter -3 in Annexure-II)
20. PROBABLE SHORT NOTES QUESTIONS
(Certain short notes questions, which are already covered in the respective chapters given above, have not been repeated here)
a. Professional Skepticism (SA-200 & SA-240)
b. Audit Risk, Inherent Risk, Control Risk, Detection Risk (SA-200(R), Audit in a Risk based Environment (Chapter 5)
c. Written Representations (SA-580)
d. Unmodified Opinion, Qualified Opinion, Disclaimer of Opinion, Emphasis of Matter and Other Matter (SA-700, SA-705, SA 706)
e. Company Audit- Personal expenses of Directors, Capital Reserves, Interim Dividend, Non-provision for Proposed Dividend, Non-provision for tax liability
f. Qualified and Independent Audit Committee, Audit Committee u/s 292A (Chapter-9)
g. Report on Corporate Governance (Chapter-9)
h. Special Report to the Registrar of Co-operative societies (Point No.8 in Special Features in Co-operative Audit)
i. Audit and Investigation
j. Audit of Members of Stock Exchange – refer to points given earlier
k. SA-570- Financial, Operating and Other Indications
l. EDP Audit- Black Box and White Box Approach
1. All the areas given in this attachment are based on LATEST EDITION of Institute Study Material (2011 Edition is updated in Revised SAs and many other chapters)
2. Do not answer questions 1 and 2 at the beginning of the exam. First answer two or three direct and simple questions before attempting questions 1 and 2 which are practical.
3. Present the answers point-wise and avoid paragraph-wise presentation.
4. Examples and illustrations given in Chapters are important for practical questions.
ONCE AGAIN I WISH YOU THE VERY BEST FOR YOUR EXAMS. I REQUEST YOU TO CONTACT ME THROUGH EMAIL REGARDING YOUR EXPERIENCE IN ATTENDING THE AUDITING EXAMINATION.
CA S.GANAPATHY
Vandana Mulchandani
(Finance Manager )
(9227 Points)
Replied 17 October 2011
Thank you for the important post...ALL THE BEST
Ronit
(Article)
(73 Points)
Replied 22 October 2011
THANX for this,
but hey whether ganpathy sir's imp Q clicks in exam?
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