Dear Students and members
CA exam both final and I P C C results was declared . Congratulation for those who had cleared their exams and best of luck for those who fail the exam. I am giving some rescue plan for those who had failed their exam.
I am glad to invite all of your attention towards scoring good mark in Audit paper. Today exam pattern were Purely practical , real time made and will test the knowledge of all the CA students.
1. Important areas ( Be master)
More than 60 % of exam questions were based on the following areas. No compromise with these areas. Be through and excellent.
Ø Professional ethics ( CA final exams)
Ø CARO 2003
Ø Accounting standard based audit questions
Ø SA based q questions
Ø Company Audit ( Part one and Part 2)
Ø Special audit , EDP audit etc
2. Presentation part in exam.
Now a day exam questions are practical, real time made and twisting also. A silly mistake will be penalized greatly. This may cause failure in this paper.
Most of the paper has applications in more than one dimension. Say “Going concern” . You have to see where all this words hit and write according to the exam requirement.
Ø AS-1”Disclosure of Accounting Policies” explains the 3 fundamental assumptions of accounting which includes going concern. (AS-1”Disclosure of Accounting Policies” explains the 3 fundamental assumptions of accounting which includes going concern).
Ø Section 227(4A) CARO 2003 states that if the going concern of the enterprise has been affected the auditor has to report on the same.
Ø AS-4”Contingencies and events occurring after the balance sheet date (events occurring after the balance sheet date may indicate that the enterprise ceases to be a going concern)
Ø As per SA 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.
Example No 2 Relying on work of internal auditor
Ø 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 core 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.
Ø Basic Principals governing Audit “one of the principals laid down is internal control (Internal Control = Internal Audit + Internal Check)
Ø “Relying on the work of the internal auditor “in detail.
3. Preparation of good notes, good number of revision before exam
All the best
CA Vivek M
CAclubindia
