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Sunday, October 18, 2009

ICAI Announcement for AAS and SA

The following list contains the details of the Standards on Auditing (SAs). For the purpose of November, 2009 examinations the students are advised to refer to the Standards on Auditing (SAs).

The details of the Standards on Auditing (SAs) with full text are being hosted for the guidance of the students.

( For Final – Old and Final – New )

S.No. Standards on Auditing and Number

1. Basic Principles Governing an Audit (SA 200)

2. Objectives and Scope of the Audit of Financial Statements (SA 200A)

3. Terms of Audit Engagement (SA 210)

4. Quality Control for Audit Work (SA 220)

5. Audit Documentation (230) (Revised)

6. The Auditor’s Responsibility to Consider Fraud and Error in an Audit of Financial Statements (SA 240) (Revised)

7. Consideration of Laws and Regulations in an Audit of Financial Statements (SA 250) (Revised)

8. Communication of Audit Matters with Those Charged with Governance (SA 260) (Revised)

9. Responsibility of Joint Auditors (SA 299)

10. Planning an Audit of Financial Statements (300) (Revised)

11. Identifying and Assessing the Risk of Material Misstatement Through Understanding the Entity and its Environment (SA 315) (Newly issued)*

12. Audit Materiality (SA 320)

13. The Auditor’s Responses to Assessed Risks (SA 330) (Newly issued)*

14. Audit Considerations Relating to Entities Using Service Organisations (SA 402)

15. Audit Evidence (SA 500) (Revised)

16. Audit Evidence - Additional Considerations for Specific Items (SA 501)

17. External Confirmations (SA 505)

18. Initial Engagements – Opening Balances (SA 510)

19. Analytical Procedures (SA 520)

20. Audit Sampling (SA 530) (Revised)

21. Auditing of Accounting Estimates, Including Fair Value Accounting Estimates and Related Disclosures (SA 540) (Revised)

22. Related Parties (SA 550)

23. Subsequent Events (SA 560) (Revised)

24. Going Concern (SA 570) (Revised)

25. Written Representations (SA 580) (Revised)

26. Using the Work of Another Auditor (SA 600)

27. Relying Upon the Work of an Internal Auditor (SA 610)

28. Using the Work of an Expert (SA 620)

29. The Auditor's Report on Financial Statements (SA 700)

30. Comparatives (SA 710)

31. Engagements to Compile Financial Information (SRS 4410)

32. Engagements to Perform Agreed- upon Procedures Regarding Financial Information (SRS 4400)

33. Engagements to Review Financial Statements (SRE 2400)

34. The Examination of Prospective Financial Information (SRE 3400)

* SA 315 & SA 330 – become effective in April, 2008. For November 2009 Final (Old) Examination 34 standards on Auditing as given in the Annexure – I. The Standard on Auditing (SA) 400, “Risk Assessments and Internal Control”, SA 310, “Knowledge of the Business”, and SA 401, “Auditing in a Computer Information Systems Environment”, issued in June 2002, April 2000 and January 2003, respectively, would stand withdrawn.

Wednesday, September 30, 2009

Important Questions on Audit of General Insurance Companies

1. Write short notes on “Unexpired Risks Reserve”.
2. State the procedure for verification of Agents’ Balances in the course of Audit of GIC.
3. Write short notes on (i) Co-insurance; (ii) Re-insurance; (iii) Management Expenses of Insurance Companies; (iv) Valuation of Investments in GIC and (v) Solvency Margin.
4. What observations an auditor of a GIC is required to make in compliance of CAG directions u/s 619(3) of the Companies Act, in respect of (i) System of financial control; and (ii) Investments.
5. Part IV of Schedule B of IRDA (Preparation of Financial Statements and Auditor’s Report Of Insurance Companies) Regulations, 2000, requires a Management Report to be attached to the financial statements. What are the contents of such management report?
6. “In an audit of an insurance company, the Receipts and Payments Account is also subjected to audit”. Comment on this statement in brief.

Important Bank Audit Questions

1. Write a short note on income recognition and classification of advances by the banks.
2. An industrialist with surplus funds decided to form a Private Sector Bank. What are the guidelines issued by the Reserve Bank of India for formation of private sector banks?
3. Write short notes on Vostro and Nostro Accounts.
4. What are the duties of an auditor of a nationalised bank in respect of verification, valuation and disclosure of its investments?
5. Write short notes on (i) Concurrent Audit in case of banks, (ii) Returns submitted by banks to RBI, and (iii) Audit Committee of banks.
6. What are the eligibility criteria for the Banks to enter into Insurance business?
7. How is the income recognised in case of NPAs of the banks?
8. What is the procedure for verifying Branch Adjustment A/c and Contingent Liabilities?
9. Give a specimen of material accounting policies that may be followed by a bank in respect of its foreign exchange transactions.

Suggested Hints to the Practice Paper

1 (a)
As per Guidance Note on Treatment of Reserve Created on Revaluation of Fixed Assets, issued by ICAI, Revaluation Reserve is not a realised gain and hence cannot be so adjusted.
1 (b)
Refer AS-29 regarding Onerous Contracts
1 (c)
Discuss in light of AS-10, AS-28 and AAS-9
1 (d)
Refer AS-18
2 (a)
Section 224 (8) deals with mode of fixation of remuneration but does not specify the mode of recovery of the remuneration. Further, as a matter of professional ethics it is not proper to link the delivery of the audit report conditional upon the receipt of audit fees. Auditor’s Right to Lien may also be discussed.
2 (b)
Refer Notification No.1.CA(37)/70
2 (c)
See Clause 10 Part One Schedule I
2 (d)
Refer Notification No.1.CA. (153) 86
3 (a)
Refer AAS-6
3 (b)
Refer Chapter on Audit of Indirect Taxes
4 (a)
Refer Chapter on Audit of NBFCs
4 (b)
Refer Chapter on Investigations
5 (a)
Refer Guidance Note On Section 227 (3) (E) And (F) Of The Companies Act, 1956
5 (b)
Refer Chapter on EDP Audit
6 (a)
Refer Chapter on Bank Audit
6 (b)
Refer Chapter on Audit of General Insurance Companies
7 (a)
Refer Chapter on The Company Audit
7 (b)
Refer CARO, 2003
8 (a)
Refer Chapter on Other Aspects – Corporate Governance Clause 49
8 (b)
Refer Chapter on Audit of PSUs
8 (c)
Refer Chapter on Audit of Cooperative Societies
8 (d)
Refer AS-18
8 (e)
Refer Chapter on Audit of Members of Stock Exchanges

Monday, September 28, 2009

Practice Paper

1. As a Statutory Auditor, how would you deal with the following?
(a) The Balance Sheet of Meera Rescue Services Limited as at 31.03.2005 shows Revaluation Reserves amounting to Rs. 5 crores. The company incurred a loss of Rs. 4 crores during the year 2005-2006. The chief accountant of the company proposes to adjust the aforesaid loss against the Revaluation reserve.
(b) ABC Ltd. has taken a factory on operating lease at NOIDA. During the year 2005 it relocated its operations to Ghaziabad. However the old lease cannot be cancelled and it has to continue for the next few years. The old factory can also not be re-let to another user.
(c) XYZ Limited is in the business of making bricks. The company uses furnace to heat the bricks. During the year 2005-06, one furnace bursted due to high steam pressure. The company spent Rs. 2,60,000 to get the furnace in order. The Engineers said that the furnace can now work in the usual manner.
(d) Mr. Lal is the Director (Sales) in Hum-Tum Limited. He is drawing a monthly remuneration of Rs. 75,000 plus sales incentives of 10% on the sales made.
2. Comment on the following with reference to the Chartered Accountants Act, 1949 and Schedules thereto:
(a) The liability of audit fees of a company has been outstanding since last two years. This year after completing the audit, the auditor informs the secretary of the company over phone to bring the cheque of all the three years and take the delivery of the audit report. Discuss briefly the above statement in the context of the right of auditor to receive the remuneration.
(b) M/s Suraj and Co. are the Cost Auditors of Beauty Cosmetics Limited duly appointed u/s 233B of the Companies Act, 1956. Mr. Kiran, a chartered accountant is a part time employee of the M/s Suraj and Co. and accepts his appointment as a statutory auditor u/s 224 of the Companies Act, 1956, of Beauty Cosmetics Limited.
(c) Mr. L has charged a fee for representing his client in an Income Tax Appeal based on the expected relief to his client as a result of the appeal.
(d) Mr. Rahim is a practicing Chartered Accountant. He does not maintain the books of accounts.
3. Answer the following:
(a) What do you understand by Audit Risk? What is the relationship between different types of Audit Risks?
(b) What is your understanding about the term “Audit of Indirect Taxes”? Explain the steps involved in the indirect tax audit.
4. Answer the following:
(a) What are the matters that should be included in the Auditor’s Report on NBFC?
(b) Mr. Rahul (Director – Finance) of M/s XYZ Limited, approached to Good Bank Limited with a request to avail loan for the import of machinery costing Rs. 80 lacs. The Bank appointed you to investigate whether it is worthwhile to give loan to the company. What steps would you follow in this regard?
5. Answer the following:
(a) “There is no need to report in thick type or italics such matters which do not have any effect on the financial statements.” Comment.
(b) What are the different kinds of Internal Controls that should be considered by the auditor to determine the nature, timing and extent of his audit procedures in an EDP audit?
6. Answer the following:
(a) What steps should be followed by the auditor to verify the donations made by the bank?
(b) State the provisions regarding the management expenses in the context of general insurance business.
7. Answer the following:
(a) What are the provisions as regards remuneration of auditor? Mr. A is an auditor of a company. He was paid Rs. 45,000 towards his remuneration (comprising Rs. 25,000 as audit fees, including service tax; Rs. 10,000 towards preparing and filing Form 8, 13 regarding registration of charges and Rs. 10,000 as other charges). How would you disclose this remuneration in the Profit and Loss Account?
(b) What are the requirements of CARO, 2003 as regards the internal audit system?
8. Write short notes on any four of the following:
(a) Audit Committee.
(b) Propriety Elements of CARO, 2003.
(c) Special Report to the Registrar of Co-operative Societies.
(d) Key Management Personnel.
(e) Rolling Settlement.

Wednesday, September 23, 2009

Audit Risk Model

The three components of audit risk (RMMi, 1 - Pr(De), and 1 - Pr(Da)), are referred to respectively as inherent risk [IR], control risk [CR] and detection risk [DR]. This gives rise to the audit risk model of: AR = IR x CR x DR, where
  • IR, inherent risk, is the perceived level of risk that a material misstatement may occur in the client's unaudited financial statements, or underlying levels of aggregation, in the absence of internal control procedures;
  • CR, control risk, is the perceived level of risk that a material misstatement in the client's unaudited financial statements, or underlying levels of aggregation, will not be detected and corrected by the management's internal control procedures 70%;
  • DR, detection risk, is the perceived level of risk that a material misstatement in the client's unaudited financial statements, or underlying levels of aggregation, will not be detected by the auditor.
    In practice, however, auditors evaluate risk components using terms such as LOW, MODERATE or HIGH rather than using precise probabilities.

Wednesday, September 2, 2009

Retention Period for Working Papers

The Council of the Institute of Chartered Accountants of India, at its 289th meeting held on August 19, 2009 at New Delhi, pursuant to the provisions of Rule 12 of the Chartered Accountants (Procedures of Investigations of Professional and Other Misconduct and Conduct of Cases) Rules, 2007, has decided to amend paragraph 83 of the SQC 1 as follows:
“83. The needs of the firm for retention ………………………………...............................................
In the specific case of audit engagements, the retention period ordinarily is no shorter than seven years from the date of the auditor’s report, or, if later, the date of the group auditor’s report.” (emphasis added)

Sunday, August 30, 2009

Resolutions which are required to be passed as special resolutions

Section No.
17 and 17A
Alter object clause, name of company, registered office to other State. Change to other State requires confirmation of Central Government (postal ballot required in case of listed companies). Change within the State but under jurisdiction of different ROC requires permission of RD u/s 17A – see 146(2))
Change name of Company, subject to approval of Central Government.
To omit the name 'Limited' or 'Private Limited' in case of licensed company.
Alter Articles of Association (postal ballot required in case of listed companies for insertion of provisions relating to private company).
Buy back of securities (postal ballot required in case of listed companies, if in excess of 10% of total paid up capital in a year).
Issue of sweat equity shares (postal ballot required in case of listed companies).
81(1A) and 81(3
Offer further shares to persons other than existing members (i.e. not to make a rights issue)
Convert loans or debentures into shares, if approved before issue of debentures or raising of loans.
To determine that any portion of share capital shall not be called up except in winding up.
Reduction in share capital (subject to confirmation by Court)
Varying rights of holders of class of shares (postal ballot required in case of listed companies for variation of rights attached to class of shares or debentures or other securities).
Remove registered office out of city limits, but within the State (postal ballot required in case of listed companies).
To commence new business.
Keep statutory registers at any place within city / town other than the registered office.
Authorise payment of interest out of capital - approval of Central Government is required
Appoint statutory auditors when share-holding of Government, financial institutions and nationalised banks is 25% or more.
Have affairs of the company investigated by inspector appointed by Central Government.
269 (read with Schedule XIII)
Approval of minimum remuneration to MD/WD/Manager, if more than prescribed ‘normal’ limit.
Appoint sole selling agents in certain cases if paid-up capital is Rs 50 lakhs or more.
Determine remuneration payable to a director (other than MD) - necessary only if Articles require a special resolution - applicable only to a public company or its subsidiary.
Authorising payment by way of commission on basis of percentage of profit, to a director who is not MD or whole time director - applicable only to a public company or its subsidiary.
314(1), (1B)
Approval for holding office of profit under the company or subsidiary for director or his relative or partner, firm, private company etc. in certain cases.
To alter memorandum of association so as to render unlimited liability of its directors or manager - resolution can be passed only if articles so authorise - such resolution can only apply to future director/s and manager. It does not apply to existing director / directors / manager during his current term, unless he has accorded his consent to his liability becoming unlimited.
Make / give investment / loans / guarantee / security beyond 60% / 100% limit (postal ballot required in case of listed companies for giving loans or extending guarantee or providing security in excess of limits).
To get the company wound up by Court.
To have the company voluntarily wound up.
To authorise liquidator in a voluntary winding up to accept shares as consideration for company's property.
To authorise liquidator in a members' winding up to exercise powers specified in section 457(1)(a) to (d).
To accord sanction for any agreement between company and its creditors so as to bind company and its creditors.
To authorise liquidator to exercise certain powers in a voluntary winding up.
To direct disposal of books and papers after completion of winding up and about to be dissolved, in case of members' voluntary winding up.
To alter form of constitution of a company registered under part IX of the Act, e.g. a partnership firm registered as a company.
581H to 581ZL
Resolutions relating to producer company.
Resolution that acquirer need not make public offer to take 20% shares of target company (Required as per SEBI Takeover Regulations) (postal ballot required in case of listed companies).

Sunday, August 23, 2009

PSU Audit

  1. Do Board of Directors need to reply on the observations made by the CAG????? NO
  2. In case of a PSU, an officer of the Comptroller and Auditor General insists that he is entitled to supplement its tax audit report???? Can't Insist

Tuesday, August 18, 2009

Peer Review

Issued in March 2002,
To assure that profession is conscious of its responsibilities and strive its best to ensure that highest standards are observed by all practicing members rendering audit and attestation services to the society.
To ensure that in professional assignments, the member of ICAI.
(a) Comply with technical standard, and
(b) Have proper system to maintain quality of work.

Bonus Issue and Revaluation Reserve

An unlisted public company or a private limited company can issue bonus shares even out of its revaluation reserve [SC in Bhagwati Developers vs. Peerless General Finance & Investment Company (2005)]

Wednesday, August 12, 2009

Dual Dating in Auditor's Report

SA 560/ AAS 19: Subsequent Events
Additional date is included in the auditor’s report:
  • to inform the users that the auditor’s procedures subsequent to that date;
  • were restricted to the subsequent amendment of the financial statements.
    e.g.: “(Date of Auditors’ Report), except as to Note Y, which is as of (date of completion of audit procedures restricted to amendments described in Note Y)”
    “30-04-2009, except as to Note Y, which is as of 25-5-2009 which is restricted to amendments described in Note Y ”

Tuesday, August 11, 2009

Think before you conclude..............

  1. What is "Deferred Revenue"?
  2. What is "Due Audit Care"?
  3. A tax auditor cannot be a statutory auditor and vice versa. Explain.
  4. Difference between "Material Fact" and "Material Misstatement".
  5. Difference between "Solicitation" and "Advertisement".

Any Answers................

Comment on the following with reference to the Chartered Accountants Act, 1949 and Schedules thereto:
  1. Mr. S, a Chartered Accountant published a book and gave his personal details as the author. These details also mentioned his professional experience and his present association as partner with M/s RST, a firm.
  2. Mr. C accepted the Statutory audit of M/s PSU Ltd., whose net worth is negative for the year 2003-04. The audit was to be conducted for the year 2004-05. The audited accounts for the year 2004-05 showed liability for payment of tax audit fees of Rs. 15,000 in favour of Mr. E, the previous auditor.
  3. M/s PQR, a firm of Chartered Accountants with 5 partners has accepted the audit of ABC Pvt. Ltd. for 2004-05 at, an audit fee of Rs. 2,500. ABC Pvt. Ltd. was incorporated in April, 2002, but had commenced operations in January, 2005.
  4. Mr. P, a Chartered Accountant in practice entered into a partnership with Mr. L, an advocate for sharing of fees for work sent by one to the other. However, due to some disputes, the partnership was dissolved after 1 month without any fees having been received.

Monday, August 10, 2009

Code of Ethics: Do you know..........

  1. Management Consultancy Companies floated by Practicing Chartered Accountants can receive remuneration from an employer based on percentage of the annual CTC of the Candidate while providing services relating to recruitment or placement of such candidate as only clauses (6) & (7) of Part I of First Schedule to The Chartered Accountants Act, 1949, are applicable to such companies. Individual practicing Chartered Accountants or their firms are not permitted for the same as per the provisions of Clause (10) of part I of the First Schedule to the CA Act, 1949;
  2. Publishing a book by a firm containing its history for the purpose of distributing to clients, associates, friends and well wishers and printing of the words ‘Celebrating 75 years in the Profession’ on special letterheads and envelopes of the firm will lead to solicitation of professional work, hence not permissible as per the provisions of Clause (6) and (7) of Part I of the First Schedule to the Chartered Accountants Act, 1949;
  3. It is prohibitive to undertake the assignments of Internal Audit of a client and entry of the transaction for Accounting, simultaneously being violative of the provisions of the ‘Guidance Note on Independence of Auditors’;
  4. Concurrent audit and the assignment of Quarterly review of the same entity cannot be taken simultaneously as the concurrent audit being a kind of internal audit and the quarterly review being a kind of Statutory audit undertaken simultaneously are prohibited under the provisions of ‘Guidance Note on Independence of Auditors’

Monday, July 20, 2009

CA Final June 2009 Question Paper with Hints

1. As an auditor, how would you deal with the following:

(a) In the audit of an Organisation whose objects are charitable or religious, holds that the Accounting Standards are not applicable to it, since only a very small proportion of its activities consist of business in nature (Refer Para 3.5, Chapter 5).

(b) During the audit for the year ended on 31st March, 2009 of XYZ Ltd. you come across certain personal expenses of employees have been debited to Profit and Loss account. (Refer Section 227(1A), Chapter 1)

(c) While conducting the audit of ABC Ltd. for the year ended on 31st March, 2009, you find that the company has disposed off substantial part of the fixed assets, but the management of the company represents to you that they will continue in business. (Refer AAS 11, AAS 16 and Clause 4(i) of CARO)

(d) A Ltd. has not made provisions for proposed dividends in its accounts but proposes to charge the dividends to Profit & Loss account as and when paid. (Refer AS 4 and Schedule VI)

2. Comment on the following with reference to the Chartered Accountants Act, 1949 as amended by the Chartered Accountants (Amendment) Act, 2006 and Schedules thereto:

(a) Mr. B, a practicing Chartered Accountant, expressed his opinion on the financials of M/s ABC Ltd. for the year ended on 31st March, 2009. It was later found that the closing stock was valued arbitrarily by Management which was accepted by him without verification and large amount of revenue expenditure was capitalised. (Refer Part I, Clause 7, Second Schedule)

(b) Mr. A was appointed by H Ltd. to audit the PF trust maintained by the company. While conducting the audit he noticed that large amount of loans have been given out of the trust to the employer company in contravention of the rules of the PF trust. He had disclosed the irregularities to the trustees and to the company but not to the individual subscribers of the PF. When queried on his omission to disclose, he explained that he owed no duty to the individual members.(Refer Part I, Clause 5 & 6, Second Schedule, The audit report is made to trustees and it is for the trustees to forward that report to individual members)

(c) Mr. B was appointed as auditor of XYZ Ltd. in place of Mr. A. Mr. B had sent a letter of communication to Mr. A under certificate of posting and proceeds to conduct the audit. Mr. A makes a complaint to the Institute on the basis of non-receipt of communication. (Refer Part I, Clause 8, First Schedule)

(d) A Chartered Accountant firm pays share in the profits to a widow of its deceased partner. (Refer Part I, Clause 2, First Schedule)

3. (a) State the points in an investigation of frauds through suppliers ledger. (Refer Chapter 10)

(b) State the circumstances that may warrant the introduction of Cost Audit. (Refer Chapter 6)

(c) State your views on reference to an expert in the Auditor’s report (Refer AAS 9)

4. (a) State the internal controls in the area of Loans and Advances of Banks. (Refer Chapter 12)

(b) What shall comprise the auditor’s report of Mutual Funds. (Refer Chapter 18)

5. (a) State briefly the communication/ reporting requirements as per AAS 21 on non-compliance in an audit of financial statement:

(i) To the management

(ii) To the users of the auditor’s report on the financial statements.

(iii) To the regulatory and enforcement authorities (for all parts Refer AAS 21, Q. 4)

(b) State the reporting requirement regarding books of account (prescribed, maintained and examined), in Form No. 3CD of Tax Audit under Section 44AB of the Income Tax Act, 1961. (Refer Form 3CD Clause 9, Chapter 5)

6. (a) State the audit procedures for verification of outstanding premium and agents’ balances of General Insurance Companies. (Refer Chapter 13)

(b) When should an auditor make a disclaimer opinion in his Audit report? (Refer AAS 28)

(c) What are the general principles that propriety audit need to conform? (Refer Chapter 9)

7. (a) “When the computer information systems are significant, the auditor should obtain an understanding of the CIS environment and whether it may influence the assessment of inherent and control risk.” What factors an auditor has to consider in such risk assessment? (Refer AAS 29)

(b) In an operational audit performance evaluation, what factors can cause unsatisfactory production performance? (Refer Chapter 7)

8. Write short notes on any four of the following:

(a) Usefulness of careful and adequate audit planning. (Refer AAS 8)

(b) Verification of Margin Deposit Book in the audit of Members of Stock Exchanges. (Refer Chapter 19)

(c) Professional Negligence. (Refer Part I, Clause 7, Second Schedule)

(d) Purposes for which analytical procedures are used by auditors. (Refer AAS 14)

(e) Unqualified opinion in the context of the Auditor’s report. (Refer AAS 28)

(f) Assessing the reliability of Audit evidence. (Refer AAS 5)

Amendments applicable for November, 2009 examination

  1. AAS/ SA;
  2. SQC 1;
  3. Code of Ethics;
  4. Clause 49;
  5. NBFC;
  6. MSMED Act Reporting;
  7. Bank Audit

Important Topics for Advanced Auditing

  1. Appointment of Auditor by Special Resolution: Material date for 25% holding of subscribed share capital
  2. Audit of Branch Accounts
  3. Appointment of Special Auditor u/s 233A
  4. Audit Strategy
  5. Dividends and the related Rules on transfer of profits to reserves
  6. Final Dividend vs. Interim Dividend
  7. Corporate Form of Practice by CA
  8. New Disciplinary Mechanism
  9. Clause 5, 6, 7 and 8 of Part I, Schedule First
  10. Clause 7 and Clause 10 of Part I, Schedule Second
  11. Part IV and Part III of Schedule First and Schedule Second respectively
  12. Guidelines for website by CA
  13. Calculation of turnover u/s 44AB
  14. Clause 12A, 17, 21, 24, 27 and 32 of Form 3CD
  15. Audit of Public Trusts
  16. True and Fair cost of production
  17. Propriety Cost audit
  18. Management Audit and its objectives
  19. Financial Audit vs. Management Audit vs. Operational Audit vs. Internal Audit
  20. Types of Management Audit Reports
  21. Practical question on drafting Management Control Questionnaire (MCQ)
  22. Audit Trail
  23. Approaches to EDP Audit
  24. Service Bureau
  25. “The objective and scope of audit does not change in CIS environment.” Comment
  26. Propriety Audit and its types
  27. Propriety elements in CARO
  28. Investigation on behalf of incoming auditor
  29. Investigation for advancing loan
  30. Practical Question 4 from Chapter 10 (Question on Page 147 of the book)
  31. Due Diligence and contents of DDR report
  32. CARO applicability on Private Limited Companies
  33. Clauses of CARO dealing with: (i) End use of Funds, (ii) Section 301, (iii) Statutory Dues and (iv) Other Dues, (v) Frauds
  34. Classification of Investments by Banks
  35. Concurrent Audit
  36. AS 11, AS 17 and Banks
  37. NOSTRO and VOSTRO Accounts of Banks
  38. Solvency Margin
  39. Valuation of Investments by General Insurance Companies
  40. Reinsurance
  41. NBFC vs. Banks
  42. Classification of NBFC as per new guidelines of RBI
  43. Appointment of Auditor in Cooperative Societies
  44. Borrowings and Loans for Cooperative Societies
  45. Appropriation of Profits, Overdue Principal and Interest in case of Cooperative Societies
  46. Excise Audit 2000
  47. Accounting Aspects for Mutual Funds
  48. Whole Chapter on Members of Stock Exchanges, specially Margins, Circuit Breakers, Contract Notes, Types of Market in NEAT system, Limit Orders, Types of books and records
  49. New definition of Independent Directors under Clause 49
  50. CEO/ CFO certification under Clause 49
  51. Whistle Blower Policy
  52. Audit Committee
  53. Energy Audit and Environmental Audit
  54. Peer Review
  55. SOX
  56. Clause 41
  57. AAS 11, 26, 14, 15, 17, 23, 28, 29, 30 to 35
  58. Drafting of (i) Letter of Engagement and (ii) Management Representation Letter
  59. Guidance Notes: Independence of Auditors, Section 227(3)(e) and (f) reporting, Financial Information in Offer Document
  60. Practice Paper 3 and Practice Paper 5 of the Book

Contact CA Kamal Garg

Students may feel free to contact me at

Learning Centers

Chennai: Mr. C K Balaji at 09840954207
Bangalore: Mr. K R Sreedhaeran at 09444162695
Ernakulam: Mr. Gopan B Menon at 09447170048

visit at

Our Strategy

Over past few years, we have developed our class room guidance for students in a such a way that they will feel themselves motivated and confident enough to face the examination. It is said that half the battle is won if you are ready from heart and soul. At our class rooms, we follow the following pedagogy:
  1. Guiding the students what to write and how to write in Audit examination;
  2. Providing the priority of those chapters and topics that need to be prepared first;
  3. Preparing the students for AAS and SA in a "Never you Forget Style";
  4. Explaining the provisions of "Professional Ethics" with several illustrations;
  5. Coverage of Special Audits with practical examples;

All the above are covered through Power Point Presentations

Can 60+ be scored in Advanced Auditing for CA Final

Generally students do have the perception that Advanced Auditing being a theory paper makes it difficult to score even more than 50. But I am of the opinion that Advanced Auditing is basically a practical paper which tests the application of knowledge gained in accountancy, corporate and other laws and even in other subjects. I believe an earnest and strategically planned preparation of this paper can make students score even 60+. What is thus required is to chalk out a plan as to "What to Prepare and How to Prepare" and not "What we want to Prepare"

About CA Kamal Garg

  1. Guest speaker at NIRC of ICAI, New Delhi and CIRC of ICAI, Jaipur & NOIDA for GMCS
  2. Guest speaker for IFRS at IBC & PKG, Mumbai, the associate group of KPMG IFRS Training Institute
  3. Author of ‘Accounting Standards and IFRS’ published by Bharat Law House (BLH)
  4. Author of ‘Auditors’ Practice Manual’ published by BLH
  5. Author of ‘Handbook on Company’s Balance Sheet and Profit & Loss Account’ published by BLH
  6. Author of ‘Handbook on Internal Auditing’ published by BLH
  7. Author of the book on ‘Professional Approach to Advanced Auditing’ for CA (Final) studies published by BLH
  8. Author of the book on ‘Systematic Approach to Auditing’ for CA (PCC) studies published by BLH
  9. Author of the book on ‘Mercantile Laws’ for CA (CPT) published by BLH
  10. Contributed Gist of Accounting Standards and Auditing and Assurance Standards for Vol. 2 of Company Law published by BLH
  11. Contributed various articles for NIRC of ICAI Newsletter and a series of articles on ‘Delhi Value Added Tax (DVAT) – Taxation, Accounting and Auditing Aspects’ for the Journal Tax and Corporate Referencer (TCR)
  12. Contributed various articles on External Commercial Borrowings (ECB), Direct Taxes, Foreign Investments for TCR