Auditing, though a theory subject, requires a minimum practical exposure to understand and apply the principles and procedures in the examination. Mere bookish knowledge will only help to score the minimum marks, which will not contribute to the aggregate marks.
Auditing is a combination of three subjects namely Accountancy, Law and Principles of Auditing and therefore requires expert knowledge and practical application of these subjects.
Good handwriting, reasonable command over English language, simple and effective presentation of answers, ever present desire to ask questions and voracious reading of reference books, business magazines, financial newspapers and the Chartered Accountant magazine are the basic ingredients to update knowledge, increase practical exposure and improve the quality of the answers.
Therefore the examination approach should be as follows:
a. Read the Institute Study Material along with a basic book on Auditing to improve the basic knowledge.
b. Answer the self-examinations questions given at the end of each Study Material (Topic-wise) and clear the doubts with a faculty on Auditing.
c. Practice writing the previous examination questions in simulated examination conditions, time is the essence.
d. Read the Statements on Standards on Auditing, Accounting Standards and Guidance Notes issued by ICAI and examine its practical applications.
e. Clarity and practical knowledge is required in certain areas like vouching, verification, investigation, reporting, expression of opinion, rights and duties of auditor and auditee.
f. Reading the question once and answering will prove dangerous since many questions are either specific or vague and understanding of the question may be different in the first reading.
g. Identify the questions, which require point-wise or tabular-wise or paragraph-wise presentation like short notes, distinguish between, case type or discussion questions. Comment type questions require specific answers with decision and reasons for the decision.
h. Do not choose compulsory questions at the beginning since they require in depth analysis and application of legal provisions or notifications, which is difficult due to psychological pressure of time and need to score marks.
i. Answers should be specific, arranged in paragraphs with headings and important points underlined which will help easy valuation.
j. Examples and Illustrations are necessary wherever required which will clearly bring out the understanding of the subject and improve the presentation of the answers.
k. There is a wrong impression among some students that writing more numbers of pages in theory subjects will fetch more marks. Professional examinations require answers to the point even if it is short since the marks are awarded only for the matter and not for the length of the answers.
l. Maintaining proper notes for all the studies discussed above is essential and will be helpful for revision before the examination.
m. Answers to questions should be commensurate with the marks allotted and time planning is crucial.
In short, an all round approach is required in the subject of Auditing to be successful in the examination.
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