Saturday, May 7, 2011

Score more than 60 in I PCC audit paper

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


Is CA I P C C Result will be Favourable

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