A WORD ABOUT STUDY MATERIAL
Auditing is an important area of core competency of the Chartered Accountancy profession. Millions of investors, potential investors and other stakeholders of an organization repose faith and confidence on the auditor’s report and the Indian Chartered Accountancy Profession has aptly served the society and contributed for the national growth and development. This became possible simply because of adherence to the strict norms of professional selfdiscipline and pursuance of the global class auditing and assurance practices.
On the wake of many corporate failures in the USA, Sarbanes–Oxley Act was enacted which encompasses newer ideas of internal control and Peer review apart from reinforcing old best practices of auditing and assurance. Enhanced role of the auditors has also been perceived at home in the context of implementing code of corporate governance and various fiscal legislations.
Students of the Final level must appreciate these developments, understand and apply the same even in their day to day work. Students should in the first instance focus on learning of auditing concepts, procedures and techniques from the study material. The knowledge being so derived may be related by the students to the practical work in the field of auditing which they do as part of their training. Auditing is largely a practical and application oriented discipline.
Students should learn the auditing concepts and techniques as also their intricacies purely for the purposes of applying them in their audit work. The auditing knowledge inputs provided to the students by the Institute through the study material and other publications and the practical training inputs provided by the audit firms during the articleship training stage compliment one another. Students should, as part of their articleship training, involve themselves deeply in the professional audit work done by their principals, for the purpose of
getting an intense practical knowledge and learning skills in Auditing.
Here are few tips for examination preparation. Students must familiarise themselves with the syllabus in detail. Since they are expected to exhibit “advanced knowledge”, it is absolutely essential that they should be able to apply theoretical knowledge to diverse practical situations. Therefore, students must study intensively SAs, Accounting Standards, relevant provisions of the Companies Act, 1956, case laws, etc. A good knowledge of these would help you to tackle practical-oriented questions in the examination. The Institute’s professional pronouncements like Accounting Standards, Statements on Standard Auditing Practices and Guidance Notes on various matters relating to Accountancy, Auditing and Taxation etc. are of critical importance to CA Final students as they form the base of their knowledge and its application to practical problems in the relevant subject areas. Students are expected to have a good insight of the contents of the above publications for their immediate purpose of examinations and also otherwise in their day to day work they are expected to make use of them. Some of these publications have been incorporated at the appropriate places in the study material. While reading through the chapters, you must take special note of various pronouncements issued by the Institute. As a matter of practical convenience, all important guidance notes and SAs have been covered at appropriate places. Some important guidance notes have been covered in the Advanced Accounting study material as well. Students must read monthly Journal “The Chartered Accountant” and the students’ newsletter “The Chartered Accountant Student” regularly. The Institute’s monthly Journal “The Chartered Accountant” is a valuable source of articles on topical interest, relevant notifications and clarifications by Government of India, RBI, SEBI, etc., information on contemporary developments in Accounting, Finance, Auditing and Corporate and Tax Laws, etc. Students, especially Final students, should regularly keep in touch with the Journal to enrich their knowledge base, relevant for examination and other purpose. “The Chartered Accountant Student”, the students’ monthly newsletter, published by the Board is another regular channel of communication with students which contributes to the fund of knowledge required of CA students, through articles, case studies, reports, academic updates, announcements, etc.
The Study Material is divided into three volumes for ease of handling by the students. Volume I contains Chapters 1 – 17 and Volume – 2 contains Chapters 18 – 22. Appendices containing text of Auditing Standards and Guidance Notes have also been included in Volume II. Volume III of the Study Material comprises of Practice Manual. Small illustrations have been incorporated in each chapter/unit to explain the concepts/principles covered in the chapter/unit. Another helpful feature is the addition of self-examination questions which will help the students in preparing for the Final Course Examination.
This study material is divided into twenty two chapters covering in details principles of Auditing, Standards on Auditing issued by the ICAI, Salient features of Sarbanes Oxley Act, 2002 with special reference to reporting on internal control as a part of Risk Assessment and Internal Control, specific audit issues classified by organizations like Company Audit, audit of Banks, Audit of General Insurance Business, Audit of Co-Operative Societies, NBFCs and Audit of Public Sector Undertakings, special audit issues like audit under Fiscal Laws, role of auditor under clause 49 of the Listing Agreement, Audit of Consolidated Financial Statements, Investigation and Due Diligence. In Chapter 21, the latest concept of Peer Review has been explained in details, which are considered as an important step towards maintenance and improvement of audit quality. In Chapter 22 Professional Ethics are dealt with which is regarded as a foundation to the audit function, which is essentially developed on the foundation of ethical norms, which has so far brought name and fame to the profession. All students of Final course should read this chapter with sincerity and imbibe the norms explained. These norms should be the guiding force while they will work as a chartered accountant.
The students are expected to cover the entire syllabus and practice on their own while going through the Volume III i.e. Practice Manual. The Practice Manual will serve as a useful and handy reference guide while preparing for Final Examination. Further, it will enhance the understanding about the pattern of questions set and the manner of answering such questions. It will enable solving the problems in the best possible manner and guide the students to improve their performance in the examinations. It will also help them to work upon their grey areas and plan a strategy to tackle theoretical as well as practical problems.
This study material has been revised in view of Standards on Auditing, Code of Ethics, NBFC guidelines etc. by Auditing team of experts under the guidance of Shri. Vijay Kapur, Director of Studies.
We would welcome suggestions to make this study material more useful to the students. In case of any doubt, students are welcome to write to the Director of Studies, The Institute of Chartered Accountants of India, A 29, Sector 62, Noida 201301.
Happy Reading and Best Wishes!
The Aim To Write This here is that almost 90% of the students don't read this before exam and we Know whatz the result.
Download Advanced Auditing & Professional Ethics Volume III
Download Single File For Advanced Auditing & Professional Ethics
Download Single File For Advanced Auditing & Professional Ethics
