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
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Segments |
Impacts |
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AS 1 |
Which describe 3 accounting |
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Disclosure of accounting policies |
Assumptions and Going concern is one |
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Among them. |
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An enterprise is always viewed as going concern, |
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neither it has intention nor necessity |
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to shutting down or materially scales |
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its operations |
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Section 227(4A) Caro 2003 |
If the going concern of the enterprise has |
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Point number 7 |
been affected the auditor has to report |
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on the same. |
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AS-4 |
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Contingencies and events occurring |
Events occurring after the balance sheet |
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after Balance sheet date |
date may indicate that the enterprise |
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ceases to be a going concern |
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AAS-16 (SA 570) |
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Going Concern |
An auditor needs to consider whether |
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the enterprise has appropriately used |
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the going concern assumption in the |
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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
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Segments |
Provisions |
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Section 227(4A) Caro 2003 |
Company having a paid up capital &Reserve |
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Point number 7 |
exceeding50 lakh as the commencement |
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of FY Concerned |
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OR |
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Avg Turn over exceeding 5 crore Rupees for a |
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period of 3 Consecutive FY concerned, whether |
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the Company have internal audit system match |
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with its nature & Size of business |
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AAS-1 (SA 200) |
One of the points laid down is with respect to |
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Basic principle governing Audit |
"Internal Control". |
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Internal Control = Internal Audit + Internal Check |
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AAS 7 (SA 610) |
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Relying on the work of Internal auditor |
In details |
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Rather than mere write up of AAS 7 (SA 610)
Example 3 Documentation
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Segments |
Provisions |
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AAS-1 |
Auditor should obtain sufficient and approriate audit |
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Basic principle governing Audit |
evidenace through performance of Compliance and |
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Substantive procedure to enable him to draw a reason |
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able conclusion onwhich to base his opinion on Financi |
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al information |
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AAS 5 |
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Documentation |
In details |
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Example 4 Audit planning
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Segments |
Provisions |
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AAS-1 |
Auditor should plan his work to enable him to conduct |
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Basic principle governing Audit |
an effective audit in an efficient and timely manner |
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AAS 20 |
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Knowledge of client business |
Audit plan should be based on Knowledge of the business |
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AAS 8 |
In details |
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Audit planning |
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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
https://castudenthelpinghand.blogspot.com/ 
CAclubindia
