My Tips & Tricks for Auditing

Friends, I am very happy that we completed our study schedule for all the subjects in group-I of IPCC. All of your comments to my previous “tips and tricks for self study” articles are encouraging me to write more and more articles, especially Balu, Pulkit, Simranjeet, Sanjay, Sneha, S and V, Thesinkhan pathan and others (The place is not sufficient to write all the names here). Friends I am very thankful to all of you for lot of your appreciation and encouragement for my work in this series.

For the students who are going to give only first group in coming attempt. With the completion of law our study schedule is completed for first group. Don’t waste time, even every single minute is very important, revise all the subjects once or twice before the exam. This revision makes you perfect.

INTRODUCTION:

Now let us come to the subject called AUDITING. For the PCC students this auditing is very easy subject because they know very well it in a practical way while they undergoing apprenticeship. But for IPCC students it is totally a new subject. Now let’s we make this auditing subject easy to IPCC students too. 

MY TIPS FOR THE EXAMINATION:

Go for the Padhuka or Vinod kumar agarwal for Auditing, these books cover every point relevant for examination.

In auditing also each and every question will fetch for 5 marks. So, don’t leave any question in examination. Try to attempt all the questions there will be an enough time to attempt all the questions. 

As I already shared this with you, answer the case laws in the following way:

@ Facts of the case

@ Provisions of the case

@ Analysis of the case

@ Conclusion for the case.

This will fetch you good marks. Directly don’t give your decisions at first while answering Case law 

RELEVANCY OF QUOTING SECTIONS:

In the case of auditing just go through Company audit sections and quote the same in exam wherever relevant. This will create a good impression in the minds of examiner and my sincere requests don’t quote wrong or guessed sections. Present the sections only if you knows that surely. 

ROLE OF AAS OR SA’s: (Schedule G)

Same just like I explained in “MY TIPS AND TRICKS IN ACCOUNTS” read the Auditing standards just spending 15 minutes time everyday in Morning and in Evening. The only change here is instead of 2 read 4 AAS every day. In my opinion reading the AAS and AS at one stretch will not give perfection because when you came to last standards we use to forget the first standards which you read before.

If anyone says “these AAS are important for exam, study only this you will get good marks” please don’t trust all those words, all the AAS are important for exam. We can’t predict that which standard is going to come in examination. These AAS will play a major role in Exams.

Mostly all the questions somewhere will cover AAS. So, be thorough with AAS.

 COMPANY AUDIT: (Schedule A)

One of the most important areas in the Auditing is Company Audit. From this chapter you will get nearly 25 to 30 marks. Also not in aspect of importance, this is very interesting chapter too. According to me I enjoyed a lot when I read this chapter. We can divide this Company audit into 5 heads:

1.   Audit of limited Company: The Company Auditor

2.    Powers and Duties of Auditors

3.    Misc. matters in company audit

4.    Audit of share capital and share transfer

5.    Audit of debentures and dividends

When we come to audit of limited company it contains qualification, disqualification, appointment, removal of Company auditor. Form this you will surely get a minimum of 5 to 7 marks.

Well now we come to Powers and Duties of Auditor, this will include rights and powers of auditor, duties of auditor, Types of Audit report etc., from this also you are going to get nearly 9 marks.

When coming 3rd and 4th head you will get nearly 6 to 7 marks from this area and

Finally from the audit of debentures and dividends you will get 3 to 4 marks.

You will cover the same topics under 4th and 5th head in company law also. So, while reading gives more importance to the top 3 heads.

From the company audit in every attempt examiner is asking the question from CARO. Please concentrate on the same.

SPECIAL AUDIT: (Schedule B)

Friends surely we will get one 5 marks question from this topic.

Answer any question which comes from this topic in the following way:

First write about the constitution for that question (hospital or trust or schools or theatres etc) belongs to.

Then write about the internal control

Then go for the receipts

After that write about expenditure

Then for assets and

Finally other points, applicable to that particular audit.

The above said points are common to all the type of audits, hence it is the easy way to answer Special audit.

We will get 7 to 8 marks from this chapter. We should secure minimum of 5 marks out of 8 marks by answering in this way.

GOVT AUDIT: (Schedule C)

Then comes to govt. audit from this we will get nearly 5 marks. Also it is very small topic.

CIS ENVIRONMENT: (Schedule D)

Almost we have these types of topics on computer in most of the subjects like Accounts, Law, I.Tech and this auditing.  Very small topic which covers 6 - 7 marks easily.

INTERNAL CONTROL: (Schedule E)

The question from this chapter will comes rarely. But when it comes it should be for minimum for 5 marks.

VOUCHING: (Schedule F)

For this purpose this chapter don’t read all small topics like vouching for debtors, creditors, purchases, assets etc., just prepare one standard format which is applicable for all like which we prepared for SPECIAL AUDIT. Then I would be easier to learn and also time saving.

MISC. TOPICS: (Schedule G)

You don’t need to learn again misc topics like Introduction to auditing, Fraud & error, Audit evidence etc., as they are already covered in AAS or SA’s just go through once when you are reading standards.

STUDY SCHEDULE:

Now let’s go for the study schedule starting from 9^th April:

CONCLUSION:

By this we completed our study schedule for auditing also the only remaining subject is I.Tech & S.Mgmt which I post it soon after preparing.

Hope that your preparation is going well according to our study schedules.

Once again thanks to all the members who are encouraging me a lot. As usual I require your valuable comments too. Please share your comment over here and give suggestions if any!!!

Thanking You