How to score exemption in Audit paper..YOu must read


16 August 2010  


Dear Friends and members,



The idea of the below articles I had adopted from some other articles which is already Presented to CCI


You can score more than 60% of the mark in audit paper if you are following with the below approaches

Most relevant area for Audit exam
more than 60% of the questions are set from the below area. So no choice in front of you, try for perfection in the below area, in that process you can achieve the excellence and that is enough for your success.


Most relevant points for Audit exam.( P C C /I P C C and Final level)


1. CARO 2003
2.Accounting standards
4.Company Audit ( One and Two)

Inter linking technique

Normally exam question is purely practical in nature and may have application in more than one session see the below example

Just a question of going concept is set in the exam normally what the students think? You may be think that it is AAS 16 and will write all the pros and cons of that AAS only.

But had you written the below mentioned manner you can achieve a better result. Here were are going to adopt the inter linking technique.


The going concern have the application in more than the following area.

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

The enterprise is viewed as a going concern when it does not have any intentions of shutting down or materially curtailing its scale of operations.

Section 227(4A) Caro 2003 Point number 1 states that if the going concern of the enterprise has been affected the auditor has to report on the same.

AS-4”Contingencies and events occurring after the balance sheet date “states that events occurring after the balance sheet date may indicate that the enterprise ceases to be a going concern.

AAS-16 “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.

Then explain AAS-16 in detail.

See one question have the application in many area. If the answer is just like the above you can get good marks than just

writing AAS 16 alone..

See the below set of example.

If a practical question of Internal audit students will start writing AAS 7 Relying the work on internal Auditors in details and not think beyond that...It is not write . there require some inter link tact .see how it shall be..

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 crore 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.

AAS-1”Basic Principals governing Audit “one of the principals laid down is internal control

Internal Control = Internal Audit + Internal Check

Then explain AAS-7 “Relying on the work of the internal auditor “in detail.

Ø AAS-1”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.

Then explain AAS-3 in detail.

See more example

If a questions set just documentation , then, normaly you will write AAS 5 in details.It will not fetch you more mark. but you can get it! by doing the same in the following manner.

AAS-1”Basic Principals governing Audit “one of the basic principals laid down is Audit Evidence:

The auditor should obtain sufficient appropriate audit evidence through the performance of

Compliance and substantive procedures to enable him to draw reasonable conclusions there from on

Which to base his opinion on the financial information. Then explain AAS-5 in detail.

Eg if the question is on Planning one would think of AAS-8”Audit Planning”. But instead of starting with AAS-8 you should start with

AAS-1”Basic Principals governing Audit “one of the basic principals laid down is Planning:

The auditor should plan his work to enable him to conduct an effective audit in an efficient and

Timely manner.

AAS-20”Knowlegde of Clients Business” states that plans should be based on knowledge of the

client’s business. Then explain AAS-8 in detail.

Now in the same way AAS-6 on internal control and AAS-1 POINT on internal control can be inter

related.AAS-17”Quality Control for Audit Work” and AAS-1 POINT work performed by other point

can be inter related.

Ø Section 227(4A) Caro 2003 Point number 21 and AAS-4 ”Frauds and Errors” can be interrelated.

Students must inter link the questions as far as possible. So , Pay more attention on above relevant area of CARO 2003 etc, and in your presentation do adopt the Inter linking technique..