TIPS TO SCORE GOOD MARKS IN IPCC AUDIT & ASSURANCE

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Dear Friends,
The purpose of this article is to help the students in CA IPCC Audit subjects & not to take any credit in any manner.It is not a difficult task to get exemption marks in this paper. U can get 60 + or 70 + marks in this paper by a good planning. In this article, the efforts have been made to help you to score at least 60 Marks in CA IPCC Audit. 

1- There is a chapter Special Audits, which covers around 8-16 Marks in this paper. Strongly Prepare the Chapter Special audit. As this chapter is easy to learn n remember, no involvement of SA, Audit Procedures, Concluding n reporting.

In this chapter generally 1 special audit is asked for 8 Marks and 8 special points are asked. Students generally prepare some common points which are applicable on all the special audits and expect that they will get 6 or 7 Marks. This should not be done. If in the question 8 special points are asked, u first write down at least 8 Special points, after then u should write down common points which are applicable on all the special audits. There should be around 15 points in the answer of special audit question as per suggested answer by the ICAI. Try to make a heading of the special point. Start the answer as ” In the audit of Financial Statement of a Hospital the auditor should cover following areas in his audit programme”

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2- Prepare Company Audit 1 n 2

These 2 chapters covers around 20 to 30 Marks in this paper. These 2 chapters are easy to prepare as sections are there. In the chapter Company Audit 1 there are provisions related to Company’s Statutory Auditor n in the Chapter Company Audit 2 compliance with Companies Act is examined in relation to various matter. Prepare these 2 chapters Strongly.
Prepare CARO (2015) as it is applicable for first time in Nov 2015 attempt, so as per me there should be one question in the exam regarding applicability of CARO around 5 marks.
Now 3 Chapters are covered which cover around 30-40 Marks n if your preparation is strong in these 3 chapters u can get 20-30 marks (taking as prudence approach, higher marks may also be there on questions from these 3 chapters.)

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3- Vouching and Verification

These 2 Chapters covers 16 Marks (4 X 4 Marks) in the examination. Students take these chapters very lightly (Banaa k likh denge yaar, recording, posting hi to check karni hoti hai) As per me if these two chapters are also prepared strongly u will get surely more than 60 Marks (My reasonable assurance for you)
In the chapter Vouching, you examine various transaction. There are some common points in all most all the vouching like

i- Examine Calculation of source Document
ii- Examine recording of transaction
iii-Examine classification of transaction in the relevant ledgers
iv- Trace entry in cash book n bank statement.
v- Cross check with acknowledgement
vi- Compare with Previous year

Students think that if in 4 marks these common points are mentioned they will be able to get 3 Marks. But it is myth. You should write down some special points around (5 or 6 ) related to that transaction and after then there should be common points.

Like Vouching of Advertisement Exp. Answer should be as
i- Examine nature of advertisement, it should be as per object of business.
ii- Examine its approval by governing body
iii- Compare with its Budget
iv- Examine proof of advertisement
v- Inspect agreement with advertising agency
vi- Examine application of accounting policy to w/o advertisement exp.
now common points.
There are total around 10 points n u will be able to get 3 -4 marks.

In the chapter Verification also prepare disclosure pattern of Balance Sheet item in the B/S as per Schedule III of the Companies Act, 2013, like disclosure of Debtor, Cash, Inventory, Non current assets, etc.
U should be able to get at least 12 marks out of these 16 marks.

Now your 5 Chapter are prepared covering at least 50 Marks in this paper and if these are strongly prepared u will be able to at least 35 Marks (Taking as prudence approach, higher marks may be there) Why m i saying strongly because in these chapter there are no SA (jinse app darte ho), no audit procedure (Risk Assessment Procedure, Further Audit Procedure), No Concluding and no reporting. so u can prepare these chapters strongly

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4- Now Comes to First 4 Chapters as per ICAI Study Material.

These chapters covers around 50 Marks.These chapters are complex, as involvement of SAs. Always try to attempt answers of questions from these chapters with reference of SA. Chapter 1 is basic, it be prepared without facing any difficult, Rest 3 chapters (2,3,4) belongs to Audit process. Identify questions in these chapters which are frequently asked in the exam like

i- SA- 230 (Audit Documentation)
In EVERY attempt there is question on audit documentation, so prepare strongly Questions asked- Short Note on Working Paper, Advantages of Documentation/Additional no of purposes serve by Documentation, Factors which influence for, content, & Extent of Documentation, Classification)

ii- SA- 530 (Audit Sampling)
Question Asked- Definitions, Precautions to be made in test checking, Sampling Risk, Random sampling.

iii- SA- 500 (Audit Evidence)
Questions asked- What is sufficient & Appropriate Audit Evidence, Reliability of Audit Evidence, Techniques to Obtain Audit Evidence, Mgt’s Expert)

iv- SA-300 (Audit Planning)
Questions asked- Benefit of planning, Audit strategy, Factors to be considered in the development of overall audit plan

v- SA 315 (Risk Assessment)
Questions Asked- Risk Assessment Procedures, Audit Risk

vi- SA 330 (Auditor’s Response)
Questions asked- Test of Control, Substantive Procedures.

vii- SA-265 (Communication of Deficiencies in IC)
Question asked- Letter of Weakness

viii- SA- 320 (Audit Materiality)
Question asked- Short note

ix- SA- 240 (Fraud)
Question asked- Auditor’s Responsibility in relation to fraud.

x- SA- 520 (Analytical Review)
Question asked- Short Note on analytical review

Other imp topics of these chapters- Surprise Check, Examination in Depth, Continuous Audit, Final Audit, Internal Audit, Internal Check, Inherent Limitation of IC, Audit Trail, White Box Approach, Black Box Approach, IC in CIS environment.

Other imp SA- 299, 600, 610, 620, 700, 705, 706, 560, 570, 501, 505, 510.

If Chapters of Special audit, Company Audit 1 n 2, Vouching n Verification are prepared strongly n First 4 chapters are prepared averagely even then u can get more than 60 marks in Audit (so don’t bother for SAs too much, these are imp but not so much ki app score hi na kar sako)and if u get good command in first 4 chapters also u may score 70+ 0r 80+ in audit.

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Thanks

Rathore Institute

CA. Nitin Gupta. ( M.com , FCA)