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scoring good mark in Audit paper...Dont miss it

CA.ViVeK M ACA (ACCOUNTS DEPARTMENT) (28514 Points)

06 February 2010  

How to score good mark in audit for IPCC or PCC or final? It is a good question. many were fails for aggregate because of scoring least mark in Audit papers. you may be worked hard but may not be understand what the examiner requires from the question...Iam suggesting you the following method for securing good marks...

Most relevant area for Audit exam

more than 60% of the questions are set from the below area.so be through with the following area.

1.Caro 2003

2.Accounting standards

3.AAS or SAP

4.Company Audit

Inter linking techneque

Some question have the applications in more than one area.

just a question of going concept are set in the exam normaly 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 it it not the right approach..

What is the right approach?

 

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  techneque..

 

All the Best

 Achieve the best

 

Vivek M

 


 42 Replies

vipin (student) (107 Points)
Replied 06 February 2010

ok! let's try this also
1 Like

SIDHARTH DHIR (senior articled assistant)   (623 Points)
Replied 06 February 2010

what an idea sir ji.....:)

Sushil (CA Final Student) (2571 Points)
Replied 06 February 2010

This is really require not only in Audit but also in Law, DT and IDT. Students should know how to play with different sections comprising in a single problem.


(Guest)
thx for sharing

(Guest)

thx for sharing :)

CA Jaishree... (Chartered accountant) (156 Points)
Replied 06 February 2010

thanks for the guidance........

CA.ViVeK M ACA (ACCOUNTS DEPARTMENT) (28514 Points)
Replied 06 February 2010

 

Originally posted by : Sushil

This is really require not only in Audit but also in Law, DT and IDT. Students should know how to play with different sections comprising in a single problem.

 You are Right

1 Like

(Guest)

thanks sir

Vikas Gupta (CHARTERED ACCOUNTANT) (16295 Points)
Replied 06 February 2010

Thanks

Rajat (Article) (21 Points)
Replied 06 February 2010

Thanx for sharing.............................

CA Varun Arora (CA) (286 Points)
Replied 06 February 2010

thanks sir thanks for sharing

Harsh Mittal (article) (230 Points)
Replied 06 February 2010

thanx...

Pooja Rane (Working) (159 Points)
Replied 06 February 2010

hey... its really a good peice of info... nice...

KETAN (CA Final) (87 Points)
Replied 06 February 2010

thnk  u sir :)


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