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Quick & Easy Preparation Tips & Tricks on CA Intermediate - Auditing and Assurance

By Admin |
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In CA-Intermediate Exams, Paper 6- Auditing and Assurance is the most practical-oriented subject. Everything you learn now will come in handy during articleship. Needless to say, if you work on developing a solid foundation for Auditing and Assurance now, it will make your training an enjoyable and enriching experience later on.

Also, the syllabus for CA-Intermediate Paper 6- Auditing is nothing short of vast. And you never know when time runs out too swiftly for you to notice. So, to make sure you clear this paper smoothly in the upcoming attempt, start studying now. Not to instil fear in you or anything, but rumors have it that CA-Intermediate is a more difficult to crack exam than CA-IPCC, its former counterpart. So brace yourself and step up your preparations.

Read on to find out how to score good marks in CA-Inter Paper-6 Auditing and Assurance.

CA-Intermediate – Auditing and Assurance in a Nutshell

Total marks allotted: [100 marks]

Passing Marks: [40 Marks]

Objective: To understand the concept and purpose of auditing, to gain hands-on knowledge on generally accepted auditing procedures, and to know about techniques and skills required to apply them in the audit of a business entity.

Chapter-wise List of Important topics & Standards on Auditing:

Unit-1: (Weightage20%-25%) Nature, Objective and Scope of Auditing, Audit Strategy, Audit Planning and Audit Program, Audit Sampling, Analytical Procedures.

1. Nature, Objective and Scope of Auditing.

  • Nature & Scope of Audit.
  • Qualities of Auditor.
  • Ethical requirement relating to an audit of financial Statement.
  • Inherent limitations of an audit (SA 200)
  • Agreement on Audit engagement terms (SA 210)

2..Audit Strategy, Audit Planning and Audit Program.

  • Audit Strategy; Audit planning (SA 300); Audit program.
  •  Outline of Audit Plan and program.
  • Control of quality of audit work.
  • Delegation of work.
  • Materiality in planning , performing and documenting audit (SA320)

3. Audit Sampling

  • Audit Sampling and Types of Audit Sampling
  • Methods of Selecting Sample (SA 530)

4. Analytical Procedures.

  • Nature of Analytical Procedures(SA 520)
  • Designing and performing prior to Audit.
  • Investigating the results of analytical procedure

Unit-2: (Weightage 5%-15%) Audit Documentation and Audit Evidence.

  1. Audit Documentation and Audit Evidence.
  • Audit Documentation (SA 230)
  • Procedure of obtaining Audit evidence and Source of evidence.
  • External confirmation procedures.
  • Events or conditions that may cast Doubt about going concern assumption.

Unit-3: (Weightage 10%-15%) Risk Assessment and Internal Control, Audit in an Automated Environment.

1. Risk Assessment and Internal Control.

  • Risk Assessment procedures.
  • Identifying and assessing the risk of material misstatement by understanding the entity and environment.(SA 315)
  • Tests of Control.
  • Internal Audit and Basic standards of internal Audit.

2. Audit in an Automated Environment.

  • Impacts of IT Related Risks & Control.
  •  Internal Financial control as per Regulatory requirements.
  • Understanding and documenting automated environment.
  • Data Analytics for audit and Reporting Audit findings.  


Unit-4: (Weightage 15%-20%) Fraud and Responsibilities of the Auditor in this regard, The Company Audit

1. Fraud and Responsibilities of the Auditor in this regard.

  • Responsibility for prevention and detection of fraud.(SA 240)
  • Fraud Risk Factor.
  • Provisions of the Companies Act, 2013 relating to fraud.

2. The Company Audit

  • Eligibility, Qualification & Disqualification of Auditors.
  • Appointment, Removal & powers and duties of Auditors.
  • Branch audit, Joint Audit.

Reporting requirements under the Companies Act, 2013.

Unit-5: (Weightage 10%-15%) Audit of Items of Financial Statements

  1. Audit of Items of Financial Statements
  • Audit of Sale of product and services, Rental Income, Dividend Income, Gain/Loss on sale of investments.
  • Audit of Expenses such as purchases, prior expenses, statutory expenses etc.
  • Audit of Assets and liabilities Such as Goodwill, trade mark, Loan and advances, Cash and cash equivalents, etc.

Unit-6: (Weightage 5%-15%) Audit Report

  1. Audit Report
  • Forming an opinion on financial statement ( SA 700)
  • Types of Modified opinion (SA 705)
  • Emphasis of Matter paragraphs and other matter paragraph (SA 706)

Unit-7: (Weightage 10%-20%) Audit of Banks, Audit of Different type of Entities

  1. Audit of Banks
  • Audit of items of financial statement of Bank
  • Accounting and auditing framework.
  • Audit approach
  •  Special considerations in bank audit with emphasis on advances and NPA’s.
  1. Audit of Different type of Entities
  • Duties and power of C& AG.
  • Expenditure Audit.
  • Audit of Government Companies, Local Bodies, municipal corporations, Commercial accounts.
  • Audit Of Special institutions such as hospital, Cinema Hall, NGO’s, Educational Institution.

Some of important SA’s from examinations point of view SA 200, SA 210, SA 230, SA 260, SA 330, SA 450, SA 505, SA 610, & SA 700.  

How to Score good marks in CA-Inter Paper- 6 Auditing and Assurance? 

Scoring well in any paper in CA-Intermediate depends on hard work and a strategic approach. When it comes to Auditing and Assurance, students make some mistakes that cost them dearly. Let’s take a look at the common mistakes that students are prone to making, and which keeps them from doing well in this paper.

  • Students start preparing late. They undermine the length and breadth of the syllabus
  • Students do not acknowledge the syllabus completely, and start studying randomly
  • They prepare in a haywire manner without considering the weightage of the topics
  • They take to rote learning without understanding the concepts
  • They do not do enough rounds of revision before the exam
  • They do not appear for mock tests to assess their preparedness

Preparation tips for CA Intermediate Paper 6 Auditing and Assurance

  • Start early and finish your syllabus before most students start preparing. This will give you a competitive edge above your peers. Not only that, it will give you enough time to revise the provisions later.  
  • Auditing is one of those subjects for which you must prepare notes and maintain a concept register. It will come in handy while revising the numerous sections.  
  • Do Standards on Auditing and Professional Ethics thoroughly as they carry weightage around 20-25 marks in your paper.
  • Knowledge of Accounting Standards provides an added advantage while attempting Auditing Paper. You may mention these in your relevant answers which will help you fetch good marks & also make good impression on the checker.
  • Company Audit& Special Audit are easy as well as important chapter, and covers around 30- 35 marks of your paper so, start with it first.
  • Use Flow Charts or diagrammatic formats etc. to remember sections and its provisions.
  • Make sure you adequately revise everything you learn before the exam.

Auditing – Presentation skills for writing answers

 For papers like Auditing, presentation skills are a must while writing answers. It is important to be able to arrange your answers in layers.  While practicing, try to arrange your answers to talk about the section fast, then your interpretation of the same, followed by the connection between the case in point and the section you just discussed, and end your answer with a befitting conclusion. Do not forget to top it all with a good heading, to begin with.

Additional presentation tips:

  • Your answer should be precise.
  • Try to attempt those question first, where you have complete knowledge and are confident with.
  • Language plays an important part in Auditing. Try to write technical language (e.g. use words like, substantive audit evidence instead of writing audit evidence).
  • Mention relevant section in answer only if you know them correctly.
  • Start writing your answer “As per Section” for pure theory based questions.
  • Write provision or answer point-wise instead of paragraph.
  • In Case Law based questions, never start your answer directly with `Yes’ or `No’ unless you are 100% sure. Also, try attempting these questions showcasing FACTS, ANSWER and CONCLUSION.

Follow the preparation tips and tricks in this blog post, and keep coming back to revisit the pointers from time to time. We are sure you will score well in CA-Inter Paper-6 Auditing.

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