After passing the CA Foundation and CA Intermediate the next step for CA aspirants in their journey to become a Chartered Accountant is the CA Final examination. If you are reading this you might have probably surpassed the Foundation and Intermediate courses, you have won the battle but not the war because you have to face one last hurdle before becoming a CA.
One of the difficult papers in the Final course of CA is that of the CA Final Audit. Students dread the subject of Audit due to its complexity and it's one of those subjects which are easy to understand but difficult to score marks in the exam. For a better understanding of the concepts in CA Final Audit checkout the CA Final Audit pen drive classes by CA Amit Tated's AT Academy.
Here in this blog, we have everything you need to know about the CA Final Audit exam, what CA Final Audit is about, its syllabus, preparation tips, presentation tips while writing the paper, and many more important information that a CA aspirant must know while preparing for their CA Final examination.
What is CA Final Audit
The CA Final Advanced Auditing and Professional Ethics course contain 13 chapters and 37 Standards on Auditing.
The importance of CA Final Advanced Auditing and Professional Ethics can be understood by the authority to Audit given to Chartered Accountants. It is a subject that is essential for both the CA Final preparation and the professional world.
The change in the business environment worldwide has seen a shift towards strategic decision making and has witnessed greater importance to entrepreneurial roles. This shift demands the Chartered Accountants to be more than just an Accountant or an Auditor, it demands them to be global solution providers.
Auditing is the core subject of the Chartered Accountancy course. It is not a theoretical subject but a practical one. At the final level, students are not just expected to acquire knowledge but to use the acquired knowledge in problem-solving.
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CA Final Audit Syllabus
The CA Final Audit syllabus is consisting of 18 chapters divided into three modules.
Module 1:
Chapter 1- Auditing Standards, Statements, and Guidance Notes – An Overview
Chapter 2-Audit Planning, Strategy, and Execution
Chapter 3-Risk Assessment and Internal Control
Chapter 4-Special Aspects of Auditing in an Automated Environment
Chapter 5-Audit of Limited Companies
Chapter 6-Audit Reports
Module 2:
Chapter 7-Audit Committee and Corporate Governance
Chapter 8-Audit of Consolidated Financial Statements
Chapter 9-Audit of Banks
Chapter 10-Audit of Insurance Companies
Chapter 11-Audit of Non-Banking Financial Companies
Chapter 12-Audit under Fiscal Laws
Module 3:
Chapter 13-Audit of Public Sector Undertakings
Chapter 14-Liabilities of Auditors
Chapter 15-Internal Audit, Management, and Operational Audit
Chapter 16-Due Diligence, Investigation, and Forensic Audit
Chapter 17-Peer Review and Quality Review
Chapter 18-Professional Ethics
You can learn more about these chapters in detail through the various CA Final Audit pen drive classes by CA Amit Tated's AT Academy.
Paper Pattern
CA Final Audit paper has a total score of 100 marks. It is divided into two sections: Section 1 contains MCQs and has a worth of 30 marks. Section 2 consists of descriptive answers, having a total of 70 marks.
The exam duration is for 3 hours; you’ll have to answer 30 MCQs and 5 out of 6 descriptive answers.
You can learn more about the paper pattern for the CA Final Audit exam through CA Final Audit pen drive classes by CA Amit Tated's AT Academy.
Chapter-wise weightage
1)Auditing Standards, Statements, and Guidance Notes have 10-20% weightage out of total marks.
2)Audit Planning, Strategy and Execution; Risk Assessment and Internal Control; and, Special aspects of Auditing in an Automated Environment have a weightage of 10-15%.
3)Audit Reports, Audit Reports & Certificates for Special Purpose Engagement, and Audit of Consolidated Financial Statements have a weightage worth 10-20%.
4)Special features of audit of Banks, Insurance & Non-Banking Financial Companies; Audit under Fiscal Laws; and Special Audit Assignments cover 10-15% of the total marks.
5)Audit of Public Sector Undertakings; Internal Audit, Management, and Operational Audit; Due Diligence, Investigation, and Forensic Audit; and Peer Review and Quality Review have 5-15% of weightage.
6)Professional Ethics has a weightage of 15-20%
How to prepare for CA Final Audit
To help you towards victory, here are a few study tips that you must include in your study plan for scoring well in CA Final Audit –
Understand the Concepts
While studying, always focus on the concept instead of questions, because there are no specific question formats. If you are clear on the concept, you can answer any question regarding it.
Read the ICAI study material thoroughly
ICAI study material is your best friend when you are studying for a CA examination. It covers all the important elements and you need not refer to any other notes. Just make sure you read the ICAI material and make notes as you read them. The next point enunciates this further.
Make your own notes
As you read the ICAI material and refer to other sources, make notes with attention to important concepts and keywords. Having notes which you’ve written yourself will greatly help you as you study for your exams. It not only helps you practice writing but also to retain the concepts in your mind. It’s also great to have your notes while doing last-minute revisions.
Online video lectures
CA Final Audit online video lectures are convenient because, one, they are much more economical than offline coaching, and two, you can watch them at any time you like and at a pace you like while you are studying. It makes it convenient to have things your way and not depend on coaching centers for learning. One of the online video lectures through which you can understand the concepts of CA Final Audit is CA Final Audit pen drive classes by CA Amit Tated (A.T Academy)
Discipline
When studying a complex subject like CA Final Audit it’s easy to get distracted more frequently than usual. It’s totally normal, so accept it and try to do better. It can be difficult in the beginning but keep working at it and it will get easier. Though CA Final Audit is a complex subject, it is interesting and given you put the right amount of effort in the right manner, it is not hard to score well in it.
Attempt Mock tests
Your preparation for CA exams is not complete until you have solved Mock Test Papers. Attempt as many mock exams as you can. It helps you tremendously.
Attempt previous year’s Question Paper
The previous year's question papers for each subject are also available on the Institute of Chartered Accountants of India’s website. You can find the question papers from May 2018 onwards.
Practicing question papers is a very good way of preparing for exams. Once you have completed your syllabus, you need to test your knowledge. By solving the question papers you will get the idea of what to expect in the paper as well as test your preparation and understand which areas you lack and how much revision is required.
How to study Standards on Auditing (SAs)
Study and revise Auditing Standards every day. There are several SAs and if you keep them for the end, it will be hard to remember them all. Hence, studying them every day will help keep them fresh in your memory. Here are some important SAs necessary to learn when studying for the CA Final Audit exam:
SA 200 | Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance with Standards on Auditing |
SA 210 | Agreeing the Terms of Audit Engagements |
SA 220 | Quality Control for an Audit of Financial Statements |
SA 230 | Audit Documentation |
SA 240 | The Auditor’s Responsibilities Relating to Fraud in an Audit of Financial Statements |
SA 250 | Consideration of Laws and Regulations in an Audit of Financial Statements |
SA 260 | Communication with Those Charged with Governance |
Revised SA 260 | Communication with Those Charged with Governance |
SA 265 | Communicating Deficiencies in Internal Control to Those Charged with Governance and Management |
SA 299 | Responsibility of Joint Auditors |
Revised SA 299 | Joint Audit of Financial Statements |
SA 300 | Planning an Audit of Financial Statements |
SA 315 | Identifying and Assessing the Risks of Material Misstatement Through Understanding the Entity and Its Environment |
SA 320 | Materiality in Planning and Performing an Audit |
SA 330 | The Auditor’s Responses to Assessed Risks |
SA 402 | Audit Considerations Relating to an Entity Using a Service Organisation |
SA 450 | Evaluation of Misstatements Identified During the Audit |
SA 500 | Audit Evidence |
SA 501 | Audit Evidence-Specific Considerations for Selected Items |
SA 505 | External Confirmations |
SA 510 | Initial Audit Engagements – Opening Balances |
SA 520 | Analytical Procedures |
SA 530 | Audit Sampling |
SA 540 | Auditing Accounting Estimates, Including Fair Value Accounting Estimates, and Related Disclosures |
SA 550 | Related Parties |
SA 560 | Subsequent Events |
SA 570 | Going Concerned |
Revised SA 570 | Going Concerned |
SA 580 | Written Representations |
SA 600 | Using the Work of Another Auditor |
SA 610 | Using the Work of Internal Auditors |
Revised SA 610 | Using the Work of Internal Auditors |
SA 620 | Using the Work of an Auditor’s Expert |
SA 700 | Forming an Opinion and Reporting on Financial Statements |
Revised SA 700 | Forming an Opinion and Reporting on Financial Statements |
SA 701 | Communicating Key Audit Matters in the Independent Auditor’s Report |
SA 705 | Modifications to the Opinion in the Independent Auditor’s Report |
Revised SA 705 | Modifications to the Opinion in the Independent Auditor’s Report |
SA 706 | The emphasis of Matter Paragraphs and Other Matter Paragraphs in the Independent Auditor’s Report |
Revised SA 706 | The emphasis of Matter Paragraphs and Other Matter Paragraphs in the Independent Auditor’s Report |
SA 710 | Comparative Information—Corresponding Figures and Comparative Financial Statements |
SA 720 | The Auditor’s Responsibility in Relation to Other Information in Documents Containing Audited Financial Statements |
Revised SA 720 | The Auditor’s Responsibilities Relating to Other Information |
SA 800 | Special Considerations-Audits of Financial Statements Prepared in Accordance with Special Purpose Frameworks |
SA 805 | Special Considerations-Audits of Single Financial Statements and Specific Elements, Accounts or Items of a Financial Statement |
SA 810 | Engagements to Report on Summary Financial Statements |
How to write the paper
Here are some useful tips on how to write the CA Final Audit examination.
Confidence
If you want to start off smoothly and gain a sense of confidence, you can start studying the easier and more interesting topics first. Though, if being done with the harder topics would help you concentrate better, study them first.
Practice Writing
Always write and practice all the concepts. It will help you retain them better and be prepared for the examination.
Keywords
Using the right words is extremely important in Audit. Make sure you note down all technical terms and keywords and use them liberally and accurately while writing your paper.
Complete the whole Paper
Try to attempt the whole paper of 100 marks. Doing so will increase the probability of you scoring more in the exam.
Conclusion
The most important thing to inculcate for scoring well in the CA Final Audit is sincerity and consistency. Be sincere to yourself, be consistent with your studies, and be honest in your self-evaluation. As it’s said, revision is its own reward. Revise everything you have done and practice it regularly.
A.T Academy provides help and guidance to CA Final students through video lectures, CA Final Audit pen drives classes, test series, etc. so that the students don’t suddenly feel directionless after their CA Inter exams in their journey of becoming a CA.
We hope that this blog proves to be helpful for your CA Final Audit studies. All the very best!