AUDIT PAPER ANALYSIS | CA INTER | MAY 2024 EXAMS | CA INTER AUDIT PAPER REVIEW

so I hope every one of you have given your audit paper superb and on a scale of 10 I will rate this paper as six it's an above average paper not a tough paper at all in fact some students were saying it was easy but but what I felt was it is above average it's not that easy and most importantly I hope you have seen my audit strategy video where I said to ignore three chapter straight away and MTP RTP related questions anyhow I have solved and uploaded you know top 65 questions in the name of MTP RTP and from that 10 mark from that some three four questions stri a copy pasted in fact in the time of MTP also I told that this may be asked fine anyhow second priority different types of entities risk assessment and internal control audit strategy put together actually with choice if I have to say 34 marks was asked in descript probably I feel in objective it it might have been actually student said there is no objective question on the chapters but if at all were there also 40 marks which means rest 80 marks of the paper as I always promise 34 of syllabus 80 marks paper come from the first priority chapters which I always tell and really the paper is as expected it is as per the expectation it is not based upon the trend analysis I give this you know I I choose this particular first priority last priority based on the difficulty level so whatever chapters I generally keep at last PRI they're very difficult time taking but the weightage is you know 3 to 35 marks so this is what even I told getting it and so straight away I will read from the last question in this paper you can see you know in this paper I will be taking third question as choice in this paper I will be taking third question as choice because 10 marks straight away that is from risk assessment audit strategy chapter any I'll show you so and you know the the super parties all these questions especially in my regular class I told EX exactly the same way questions were come I specifically told any topic you take from this in my regular class it is clearly told this way this question can come and exactly it came and I'll show you so JK limited has opened a new manufacturing unit and further they want planting misser since Capital out will be hug they are considering taking it on lease they have approached several parties and have shortlisted one of them who is ready to give the plan for 11 years which is approximately estimated economic life of the asset as per the agreement JK limited only will bear the insurance and maintenance Oho it's a finance Le what kind of lease agreement is the finance lease what is the accounting treatment you have to capitalize in the books of accounts and what are the tax benefits you will get depreciation as well as interest deduction that's it I think the same question is there in RTP MTP also in RTP MTP what is the difference between finance and operating list what is the accoun there is a question in mtp1 or two or RTP somewhere it was there RTP MTP straight question it was copied next so I I will show you RTP MTP now till now RTP MTP questions how many have come three one is three marks question now next so this is regarding 450 this is regarding 450 If You observe my part four marathon in that I specifically told 450 documentation question it might come you you can open and check my audit Marathon four parts were there in the fourth part I have covered this 450 so Mr an auditor has identified certain misstatements he had communicated the same to top management and also taken representation State audit documentation required by them regarding misstatements identified during the audit misstatements identified during the audit 450 documentation getting me sorry 450 evaluation of statements identified during the audit in that documentation part question last one which I covered in the marathon part four so next m&b Bank Advanced set loans guaranteed just a just a minute yeah so M&P limited has uh Advan set loans guaranteed by government state the Prudential La for asset classification Inc such loan government guaranteed loans Bank AED government guaranteed central government guaranteed loans yes or no like it it'll never turn into an NPA because central government guarante is there but interest on that cannot be recognized on acral basis getting it however for principal purpose it is not an NPA straight question from Bank audit which I told even in the marathon in part one or part two of the marathon you will find Bank a in that this discussion is there tcar Foundation is an NGO for orun they have received voluntary contribution of 5050 lakhs from promoters specifying the 20 lakhs towards Corpus and explain the terms Corpus and revolving fun Corpus contribution means what revolving Fund in my regular class I told this itself can be asked as a question I in fact you know explained these two points more specifically when I'm doing NG audit explanation regular class those of you my regular class students can easily syn with it different types of entities but this is one as for me as for me this is a second priority but you know what instead of this you can write this 220 question you can write so technically you're not losing anything here so this you can write here cam is engagement partner of Y to Z LLP and he's auditing Financial of a listed entity okay the form has determined an engagement quality control is required discuss the responsibility it's a straight question I even covered in my part four Marathon this can be asked then this is regarding a nidi company what are the reporting requirements for nidi company of course I always tell car is very important but actually you know n company rules I didn't cover in car only important clauses I covered is not that important so I didn't cover but still uh when when I say in Marathon I didn't specifically cover this point but I tell people 34th syllabus don't leave any one point also next a chartered account this is a professional accountant is expected to comply with fundamental principles of Ethics at all times explain which fundamental principle governing professional ethics is violated AA in practice accepted appointment as an auditor of a firm in which sister was a partner Independence requirement is violated it's CA in practice was appointed by his friend to seek some in Insider information about a company which was a client of his ca he could not refuse a friend's request confidentiality a CA in practice failed to inform his client about changes in law and regulation applicable professional competence next so St it's an easy question HR and Associates are Auditors of large manufacturing the company has recently invested huge property equipment in new unit they have added many incidental expenses to cost of the P the junior team are not sure about which cost are to be excluded this exact question I pointed out in part four Marathon this itself can be asked as a question in the ma you know in the exam I told in part four Marathon you go and check with this so a four marks question I was telling students are only reading items of financial so some important points no I told very clearly any question can come this can be asked like this this can be asked like this I told specifically this point in the part four Marathon you can go and open you can check it out so it's good actually the next one PQ andco want to diversify it business and for the purpose they want to raise money by issuing shares to the general public the face value is 100 oh discount so shares issued at discount I have covered it in Marathon P4 Marathon items of financials getting it it's nothing but you just have to WR company La provision a company cannot issue shares at discount except in equity equity and debt conversion next XY Associates are audits of IG which provides electric components on Project basis the purchase are H oh I think this is regarding what are the analytical procedes required to perform to obtain evidence regarding purchase quantity I told in part two or part one marathon in items of financials p and items analytical procedures for purchase important question I told already so this one very simple those of you who followed my preparation strategy nothing but 34 syllabus preparation strategy they definitely do well provided they should not take 1% Choice within that 1/4 you ignore always no problem at all rest 34 is with you that's it that is what important and this one additional regulatory information regarding loans to the following borrowers means company has given loans in advances to somebody for that additional regulat information remember funding party intermediary ultimate beneficiary disclosure requirements I specifically covered in Marathon if you want to go and see in the share Capital explanation I covered this and at the time I told the same is applicable for borrowings also the same is appliable for loans and advances given also I clearly covered there so this is also explained in Marathon what not every question in this came from my revision Marathon itself but but but revision Marathon we don't cover in depth we only give a brief idea I have the I mean the happy thing is I have I have said these kind of questions might come and exactly they came Branch audit Mr Y is principal auditor there are several divisions that are audited by other auditor State the procedes he should AAR perform so principal Auditors procedures in our book F Point nothing but in Branch audit inside that one of the point is there F point the same I have covered in Maron again you can go open and check T Co is a chartered accountant a part parip while designing testt off controls and testt details has to DET items for testing that can be effective in meeting okay for this they decided to select specific items from populations I mtp2 first question I clearly explained that time also in mtp2 clearly told this can be asked I told also that point exactly specific items testing what factors so getting it in sa 500 it discovered in actual isal under 500 it is discovered so in our material in our in our audit material 14 B question RTP MTP also discovered actually from RTP MTP this time more than three four questions have come stride questions next so four three questions over four five six over almost now now PSR and Associates are Auditors of the Saturn Hotel a chain of I since the nature of business is prone to frauds the companies appointed internal Auditors the company advis okay in order to ensure Effectiveness what kind of coordination should be there between external auditor internal coordination between external question number 10 to even this is covered in our marathon next you are appointed as auditor of a company manufacturing pains the company has robust system of internal control most of the controls in the company are automated and they are working effectively how in certain situation manual elements are more suitable what are circumstances risk assessment chapter I told it's a second prity but in the in my regular class I told this itself can be asked as a question where automated controls are more suitable can be asked as a separate question where manual elements are more suitable can be asked as separate question like this I have told in my class also specifically those are of you who watched my class regular class can sync it with can can relate to this the management changed during the audit Mr G auditor at the time of receiving representation okay what is this question is about the management uh changed during the period under audit Mr G an audited at the time of receiving representation on the management responsibilities was in dma related to date and period I think by mistake wrot like this this is sa 550 sorry 58 representation further the new management of view that they can give representation no this itself I told in Marathon clearly you you open part one or part two 580 time stamp will be there inside that last discussion period covered by representation there is a point I specifically told I highlighted this now auditor can ask representation from the current management not only about the period for which they were in office but about the pre previous periods also and you know what the same thing asked in CF final recent audit paper the same question was asked in CF final audit paper also in May 24 the same question but the wordings are different but same theme was tested in C final if you want check my CF final paper review inside that this is coming next and this is again an MTP RTP question MTP RTP question so planning includes considering certain matters prior to identification of risk enumerate such matters what are the points to be considered in planning so that one so here actually know third question is not Choice Ma third question I think you can write because in third question only 4 + 3 seven only seven marks is what coming from second category chapter getting it so it depends depends on person to person next question number two give some examples of factors that are significant in directing engagement teams efforts my regular class students if at all you watched my audit strategy chapter inside that one of the side heading is regarding this what are the factors that affect in developing overall audit inside that there are five factors one of the factor is significant you know judgment in professional judgment factors for deciding judgment regarding directing engagement team efforts I told every segment can be asked as a separate question I told and the same has come and the same point is even there in the RTP MTP you know on the day of exam or before the day of exam I uploaded RTP MTP video with a heading called top 65 questions inside the dis I told every student has to watch this after finishing their syllabus and all this RTP MTP questions are very much important so if at all those who followed my strategy plus RTP MTP those who studied thoroughly they would have really performed this well this paper well entire this descriptive they would have given more than 60 marks they would have attempted more than 60 they would have attempted out of 70 and many are saying mcqs were damn easy and it's good actually next this is regarding nature objective and scope of audit inside that inherent limitations related to future events that point only they tested just a small answer two points answer so three marks question next this even more good actually in 51 I told in Marathon in 51 I told in Marathon they will specifically ask you letter of specific inquiry letter of General inquiry you know uh what points a when auditor want to meet if at all company did not permit auditor to meet what is a recourse specifically we discussed from 51 in the marathon itself in the classroom no need in the regular class you need not even worry because I tell all the permutations and combinations I explain so in depth then now this is regarding risk assessment and internal control inquiries one of the internal one of the risk assessment procedure is enquiry inquiries to whom enquiry to internal audit staff you know enquiry to inhouse legal council enquiry to marketing people inquiry to information system people only four points only there those four points are asking you to elaborate so again next this one is documentation related regarding uh assembly of final audit file and retention period it was asked in RTP MTP actually was there in RTP MTP then this is regarding if in the part four of my Marathon you go and check IFC point exactly I covered this part four of my Marathon you go and check internal Financial controls reporting responsibilities on directors independent directors and audit committee I specifically covered these three next I'm very happy actually the paper was very expected and this is accounting standard I don't know what he tested accounting standard question in audit but nevertheless as an auditor you must be having the knowledge of all the subjects so probably on that assumption they might have tested this accounting and those of you who are unit 2D students would have forgot inventory valuation so for them it is difficult to answer and one a this is regarding what factors we should consider while preparing an audit program actually that is not the question in our book it is question number 13 a standardized audit Pro a standardized audit program may not be suitable for all the clients getting it so that question is what they asked so question number 13 our audit strategy so what I want to conve is whoever whatever second priority chapters I have told not even 10 mes actually seven so 30 marks only came 30 marks only came from the second priority chapter out of this 90 out of this 90 descriptive paper is for 90 remember 30 marks only which means remaining 60 marks you can attempt remaining 60 for sure whoever followed that strategy 50 plus you would have definitely attempted and from r p some three four questions so I hope you really did well it's not a very tough paper it's it's an above average paper I think and I I I was hearing from students that mcqs are very easy actually but if if that is the case five out of 10 is the overall difficulty of this paper descriptive itself six out of 10 because most of them are straight questions no complexity involved and I hope you really done well so focus on the next examination and do well that's it all the best

Channel: CA Ram Harsha

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Length: 16min 18sec (978 seconds)

Published: Wed May 15 2024