In this article, we are sharing the tips and tricks on Preparing for Final CA Paper on Advanced Auditing & Professional Ethics.
Table Of Contents
What is the structure of the CA Final Audit paper?
What are the examiner’s expectations?
What should be the source of content?
What is the ideal learning methodology & time to be invested?
What is the appropriate order in which the syllabus should be studied?
What are the writing skills that will help you ace the paper?
How to prepare on the eve of the exam?
What are the major challenges faced by students while attempting the Exam on the D Day & how should you prepare in advance to meet those challenges?
What is the structure of the CA Final Audit paper?
The subject of Auditing pays a very vital role in today’s ever-changing environment. For the audit paper in CA Final, it is crucial to remain updated with the latest amendments and updates on SAs, Company Audits, Bank Audits, Corporate Governance and Professional Ethics. The paper is divided into 70 marks of subjective questions and 30 marks of MCQs which is to be done on an OMR Sheet.
What are the examiner’s expectations?
- The examiner will give emphasis on your 3Rs (retention, reasoning, recalling) along with your knowledge, understanding and subject clarity.
- The examiner will assess the ability of the student to interpret and analyse the problem using the relevant concepts, latest amendments; usage of appropriate language, exercise of good judgement and logical presentation of answers.
- The examiner will lay emphasis on the articulation skills of the student – language is the key to cracking the audit paper.
- The ability of a student to correlate and quote the relevant SAs, AS and Ind AS in the exams will also be given importance
What should be the source of content?
- Content provided by your Coaching Provider can be used as a base. However, ensure that it is comprehensive in its coverage by cross checking it with ICAI material.
- Past Examination Papers, RTPs and MTPs.
- Case Study Booklet issued for MCQs.
- Once you are done covering your base syllabus, you can go practice additional questions from other sources (like scanners) to ensure that you are hands-on when several concepts are mixed together in the exams.
Pro Tip: Despite the lengthy syllabus, avoid ad-hoc selective studies, follow a method of smart studying – Make sure you are thoroughly clear with the concepts provided for in the Institute material.
What is the ideal learning methodology & time to be invested?
| Reading | Source | Time | Expected Outcome |
|---|---|---|---|
| 1st | A detailed study of every topic across the syllabus. | 100 – 120 hours |
|
| 2nd | Detailed study of the summarised notes. | 55 – 60 hours | You should start recollecting key words and clause/section numbers |
| 3rd | A mock revision to be prepared for the exam days (preferably 7 days before ICAI exams). | 25 – 30 hours | Your prep for the exam day. |
Pro Tip:
- – Refer to the Referencer developed by ICAI to prepare a summarised version of the notes.
- – Learn about the weightage distribution over various topics as per ICAI.
What is the appropriate order in which the syllabus should be studied?
The overall portion can be divided into five major parts. Studying your syllabus as per these parts will be useful in improving your understanding. This is the ideal break-up; however, feel free to tweak the same to your comfort.
| Part | Chapter Name | Tentative Marks | Corresponding SAs Study | Total Tentative Marks |
|---|---|---|---|---|
| I | 1. Professional Ethics 2. Peer Review and Quality Review |
16-20 | – | 25-35 |
| II | 1. Company Audit as per Companies Act 2013 2. CARO 2020 3. Audit Committee & Corporate Governance (SEBI LODR) 4. Audit Report 5. Liabilities of Auditor |
15-25 | SA 700 Series | |
| III | 1. Audit of Banks 2. Audit of NBFCs |
6-12 | – | |
| IV | Balance Standards on Auditing | – | ||
| V | 1. Audit of Insurance Companies 2. Audit under an Automated Environment 3. Investigation, Due Diligence and Forensic Audit 4. Internal, Management and Operational Audit 5. Audit under Fiscal Laws 6. Audit of Consolidated financial statements 7. Audit of Public Sector Undertakings 8. Risk Assessment and Internal Control 9. Audit Planning, Strategy and Execution |
25-30 | SA 300 series, SA 450 & 240
SA 200, 210 & 220 |
Pro Tips:
- Cover the standards simultaneously along with the other 4 parts so that you are efficient, and the exhaustive study of Standard’s is spread across.
- Once you are done with the first read of your syllabus, do the ICAI MCQ booklet and revise all the standards once again.
What are the writing skills that will help you ace the paper?
Audit papers are known to notoriously lengthy – The best way through is to know a rough format of your answers in advance by practicing at least 1-2 answers of each chapter in writing.
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- Present the answers to Practical questions in the following manner:
Provision of Law or SA | Facts of the Case | Comments & recommendations - Ensure that you bullet your answers and underline the key words, wherever relevant.
- Ensure that you practice in writing the various clauses of professional ethics in every revision to improve your memory and to ensure that you can reproduce the clauses verbatim on the exam day.
- Present the answers to Practical questions in the following manner:
How to prepare on the eve of the exam?
| On day of Law Paper | Break Day | On the exam day |
|---|---|---|
| Professional Ethics | Balance Auditing Standards | Complete the balance chapters, if any |
| Company Audit, including CARO 2020 | All the miscellaneous chapters in the order of your preparation | RTP and Amendments relevant to your attempt |
| Audit Reports | MTPs, Past Papers (if need be) | |
| Audit Committee & Corporate Governance | ||
| Liabilities of an Auditor | ||
| Relevant Standards to the above: SA 200 SA 700 Series |
Pro Tip:
- Generally, you will get a maximum of 20 hours to study before your audit exam. It is absolutely possible to revise the entire syllabus in 20 hours, provided you have a thorough grip on the content.
- Allot maximum 1 hour to chapters with high weightage and not more than 45 minutes to light topics.
- Set aside a period of 5-6 hours to revise all the SAs.
- Ensure that you sleep for a minimum of 7 hours sleep before your exam day.
What are the major challenges faced by students while attempting the Exam on the D Day & how should you prepare in advance to meet those challenges?
| Challenge | Solution |
|---|---|
| Recollecting and associating questions to the related topics | – Ensure that you are well-versed with the relevant SAs and sections of the relevant laws so that you can quote them and enhance your answer quality.
– When studying for other subjects, allot a period of 15 minutes for audit and revise 1-2 answers – This will develop your understanding of the subject and build your audit vocabulary. |
| Inability to manage time in the paper | – Get sufficient writing practice; this will help you develop a good writing speed.
– Appear for at least 2 Mock Test Papers sincerely and time yourself when you appear for the mock exams. |
| Inability to understand the expectations of the examiner | Read up the past RTPs and Exam Papers to gain an understanding of the answer format. |
