Whether Auditing is not a scoring subject in Chartered Accountancy Exams?

Whether Auditing is not a scoring subject in Chartered Accountancy Exams?

Many students pursuing their Chartered Accounting course are of opinion that Auditing is not a scoring subject. As a result, they give more time studying numerical subjects like Accountancy, Cost Accounting, Management Accounting etc. They simply put minimum effort into Auditing and get satisfied with just pass a percentage of anything above 40 marks. This is not a reality. Based on my personal experience I can say that Auditing is an excellent scoring subject and anybody can score good marks in Auditing even more than any numerical subject. Auditing can cover any shortfall in another subject. It can be helpful in anyone’s career as an Auditor. Before jumping on any preparation tips let us discuss some more facts on Auditing. Off-course we are not going to discuss its definition or tools and techniques since our books have enough material on them. We will discuss something beyond the books.

If you are a CA student then I would request you, not to read this article seriously but read it with sincerity. Since sincerely is more important. Get relaxed. Happy reading.

What type of Subject Audit is it?

Auditing is basically a theory-based subject. It requires a clear-cut understanding of the subject matter and its application. Auditing is a management subject and action-oriented discipline therefore it requires thorough knowledge of the subject matter. The selected study plan makes the preparation poor since questions in Auditing are not limited to Auditing tools and techniques only. They may come from Any disciplines like Accounting Treatment of any event, Matters related to Mercantile or Taxation laws. The auditor needs to know everything so that he may review and report on any situation. In a way, we can say that Auditors tend to supervise the other functions as well. Therefore, they need to have “working knowledge” of all subjects along with expert knowledge in their domain.

In a way we can say that Auditing may be compared to the Eyes of the organisation just like Astrology is called the eyes of Vedas. Where you have to visualise not only “what happened” but what may happen next. You have to smell even from a small incidence. You cannot ignore any symptoms during the auditing process. Since even small symptoms may lead to a big chain of revenue leakage or irregularity.

Since Management cannot do everything themselves, therefore, they appoint Auditors. Therefore, Great responsibility lies on the shoulders of Internal Auditors. They have to work very carefully and give equal weightage to every factor of business i.e. Capital, Assets, Human Resources, Business Strategies and other stakeholders.

In the same way, we have to reply to all questions in our exam. So that examiners could relate it with practical scenarios built by them.

 

How do we need to study for excellent scoring?

A student needs to know the types of Audits, Appointment of Auditors, Audit Program/plan, Audit Questionaries, Audit Checklists, Accounting Standards, Auditing Standards, relevant case laws along with normal business acumen so that he can read what exactly examiner wanted to know. Many students do not read the question paper carefully and start flooding answer sheets with many irrelevant matters which hardly add value in the scoring. Believe that quantity matters no doubt but the quality is more relevant. In absence of quality, scoring is difficult. To score well you have to read the question carefully and evaluate what the examiner wants to know. Be reasonable with the required information and give a point answer. You will score well.

    

Importance of Practical exposure in Auditing

In the case of long answer type questions, it would add value if answers are given with practical examples. Practical examples clarify the matters. Appropriate case studies may also work as ice on the cake.

All these are possible only when having practical exposure in Auditing. Students who are doing their article ship sincerely and gain exposure in Auditing, perform comparatively better in Auditing as compared to dummy articles.

Therefore, if you are a student then be sincere in your office working. Learn to take responsibility, establish yourself as a dedicated team member, earn the trust. You a brand ambassador of your firm. So go deep in transactions and make analytical reviews of transactions with a risk-based approach and highlight the red flags. You have to smell the early warning symptoms lying if any.

 

Importance of Short Notes

Short notes play a very interesting role in our study. Most of us make notes. Some of us forget to review it periodically. I would request our students to note down all important points and revise them periodically so that they can memorise the topics which will be helpful for them in their workings as well as in exams.

Importance of Group Discussions

Group discussions play a very important role in our studies and examination both. Discuss the key topics and issues with your friends and colleagues in study circles. These discussions give unique logic sometimes which a single person can not visualise in isolation. Therefore, engage knowledgeable persons for authentic discussion and value enhancement. So that a broader picture of the same topic can be prepared for future reference not only in exams but in practical life too.

Hope you would have been understood that Auditing is a practical subject and able to help the students with excellent marks. Just you have to be to the point, logical and analytical. If you have any queries, please drop a message in the comment. We will be happy to answer it.

Thank you and happy reading.