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Mistake By ICAI

sagar (CA Final)     07 September 2010

CA Final 
 15 likes  379 points

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Hi Friends,


"I was just going through website of ICAI when I came across suggested answers. On perusal, I came across some mistakes committed by ICAI faculty in solving question papers. I thought about sharing the same with you all for your benefit."


Mistakes in suggested answers for May’10 examination on Cost Management (i.e. Old Course).

  • In Question 4(a) (ii) on Transfer Pricing, Although BOS of ICAI has luckily chosen correct strategy but they have taken this decision on the basis of wrong calculations. Profit of Co. has been calculated as per 2011 instead of 2010.

         Their solution has shown

                Profit as per Strategy I as Rs. 1,95,000

                Profit as per Strategy II as Rs. 2,45,000.

         Correct answer should be:

                As per 1st Strategy èProfit of Division A will be Rs. 1,45,000 & Savings in Division B will be Rs. 25,000. Total = Rs. 1,70,000.

                As per 2nd Strategy èProfit of Division A will be Rs. 95,000 & Savings in Division B will be Rs. 75,000. Total = Rs. 1,70,000.

         Both Strategies are equally profitable, but as per Strategy I we will transfer internally 15000 units as against 5000 units in Strategy 2, it is advisable to follow 2nd Strategy.


Mistakes in suggested answers for May’10 examination on Advance Management Accounting (i.e. New Course).

  • In question 5(a)(ii) on Simulation, Average monthly shortfall should be 399 ÷ 12= 33.25 instead of 399 ÷ 10=39.9. If there is nil shortfall, still that period shall be taken into consideration while calculating Average. This view is also substantiated with Illustration on Pg. 16.10, Question 6(b) of May'03, Question 5(c) of May'10[Old Course], Question 3(a) of Nov.'09[Old Course]


Mistakes in suggested answers for Nov.’09 examination on Cost Management (i.e. Old Course).


  • In Question 1(b) on PERT. PERT Network is grossly wrong because precedence relationship is not correctly established in it. For e.g. In answer suggested by ICAI, A has also become predecessor of D (via dummy 2-3), similarly E has become predecessor of H (via dummy 6-7 then dummy 7-5).


                Correct PERT Network can be downloaded from:

          This question is copied from Question 4 (b) of May'1993 CA Final Examination, although its network was correctly drawn in Suggested answers of that year.


  • In above question itself, variance calculation is wrong, variance should be 2.646 [i.e. square root of (0.111+2.777+4+0.111+0)] & not 2.71 [i.e. square root of (0.44+2.78+4+0.11+0])


  • In Question 3(a), quest has specifically asked about “total time spent by a customer in system” but suggested answer has given “Average time spent by a customer in system” & have wrongly written it as “total time spent by a customer in system” Correct answer should be: 3,6,8,6,8,5,5,5,5,4,4,6,6,7,8,6,6,6,3,3


Suggested answers are uploaded by ICAI on their website (Direct link:



Source: A reputed Chartered Accountant


 If The Institute is commiting mistake, how it is expecting students to be 1005 error free?? Finding mistake is not big task, but judging some one is big.

Institute shoud realise


Details about upcoming batches of

Batch 1F20th Sept.-20th Nov. (Morning) (I.T.O.)

Daily Track (NOT FAST TRACK)

Series→ 1st O.R.; 2nd Costing

20th Sept.-29th Sept. (M/W/F)

6:30 a.m. to 10:15 a.m.















*Batch Details & Venue  are tentative & are subject to change without prior intimation; There will be 15 day break in Batch 2 & Batch 3.;Conditions Apply; Class timings for morning batchare till 9:30am but may extend till 10:15am;10:15am-11am is generally query time for morning batch & 5pm-5:45pm is generally query time for evening batch.
















Pratibha Khandelwal (Article Assistant)     07 September 2010

Pratibha Khandelwal
Article Assistant 
 76 likes  585 points

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Sagar Ji,


3 Days earlier i was asking the same type of ques. on this forum

1 Like

Ankit Satia (Service - Manager in Internal Audit Dept)     07 September 2010

Ankit Satia
Service - Manager in Internal Audit Dept 
 9 likes  235 points

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I came to know about the mistake when i was solving the May 10 paper & when my answer differed from ICAI Suggested Answer and i got confirmation from J K Shah that my answer is correct.. I have written that on esahyata of ICAI but i havent got any reply.

Few days back, it was also confirmed by Parag gupta in his group.


Nancy (Article)     07 September 2010

 34 likes  243 points

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Even I had received a mail from Parag Gupta Sir informing about this mistake.

Am really shocked to see such silly mistake. When institute itself don't know about how to solve the question I don't think they even have a right to deducts marks.

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