How to score 60 plus mark in IPCC Audit..Dont miss it


04 April 2011  


Dear Friends


This segement deals with certain tips for scoring good marks for IPCC audit paper.


Most relevant area


·         Company audit one

·         Company audit two

·         Special audit

·         CARO 2003

·         SA

·         AS



Reference book

  • Paduka/surabhi bansal (Audit segment)
  • Rawat/Dolphy Disouza ( SA and AS segment)




Approaches to study


Now days, exam questions were set in a manner that can measure the depth of knowledge of students.


The exam questions contains a lot of practical, real time questions which have application in more than in one dimension or aspects.


A good Fundamental knowledge of basic accounting and Accounting standard is an essential for effective performance.



Approaches to exam. ( Practical case laws and others)


I am hereby introducing a concept called “Inter Linked Concepts”, which is similar to inter linked bogies of Train. Linking all the concepts , in a particular order.


A particular exam questions may have application in more than one segment. You have to write the same in your own, precise point format.


You have to correlate the points in a comprehensive and cohesive manner. Go through the following examples.


If a single questions of going concern have impact on many segments. See, where ever it causes impact. Bring those impacts in one by one in a particular order.


Example 1 Going concern and its impact




AS 1

Which describe 3 accounting

Disclosure of accounting policies

Assumptions and Going concern is one


Among them.




An enterprise is always viewed as going  concern,


neither it has intention nor necessity


to shutting down or materially scales


its operations


Section 227(4A) Caro 2003

If the going concern of the enterprise has

Point number 7

 been affected the auditor has to report


on the same.




Contingencies and events occurring

Events occurring after the balance sheet

after Balance sheet date

date may indicate that the enterprise


ceases to be a going concern


AAS-16  (SA 570)


Going Concern

An auditor needs to consider whether


the enterprise has appropriately used


the going concern assumption in the


preparation in the balance sheet.



Then write AAS -16 ( SA  570) in details along with the above. Finally give your conclusions in own words.


Example 2 Internal Audit and its impacts




Section 227(4A) Caro 2003

Company having a paid up capital &Reserve

Point number 7

exceeding50 lakh as the commencement


of FY Concerned




Avg Turn over exceeding 5 crore Rupees for a


period of 3 Consecutive FY concerned, whether


the Company have internal audit system match


with its nature & Size of business


AAS-1 (SA 200)

One of the points laid down is with respect to

Basic principle governing Audit

"Internal Control".


Internal Control = Internal Audit + Internal Check




AAS 7 (SA 610)


Relying on the work of Internal auditor

In details









Rather than mere write up of AAS 7 (SA 610)


Example 3 Documentation





Auditor should obtain sufficient and approriate audit

Basic principle governing Audit

evidenace through performance of Compliance  and


Substantive procedure to enable him to draw a reason


able conclusion onwhich to base his opinion on Financi


al information











In details









Example 4 Audit planning





Auditor should plan his work to enable him to conduct

Basic principle governing Audit

an effective audit in an efficient and timely manner














AAS 20


Knowledge of client business

Audit plan should be based on Knowledge of the business









In details

Audit planning







AAS 1 (SA 200) ”Basic Principals governing Audit “ can be used as a base for many answers you write. Eg if the question is on documentation one would think of AAS-3”Documentation”.But instead of starting with AAS-3 you should start with

AAS-1”Basic Principals governing Audit “ one of the basic principals laid down is documentation: The auditor should document matters which are important in providing evidence that the audit was carried out in accordance with the basic principles.


Wish you all the best


CA vivek M

castudenthelpdesk @