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

Segments	Impacts
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.
AS-4
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

Segments	Provisions
Section 227(4A) Caro 2003	Company having a paid up capital &Reserve
Point number 7	exceeding50 lakh as the commencement
	of FY Concerned
	OR
	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

Segments	Provisions
AAS-1	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
AAS 5
Documentation	In details

Example 4 Audit planning

Segments	Provisions
AAS-1	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
AAS 8	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

castudenthelpdesk @ gmail.com