Auditguru Auditguru Frequently Asked Questions(FAQ) Auditguru Auditguru
 Meet Us Here
Nishant SharmaNishant Sharma asked 1 year ago

In Nov 2020 (new syllabus), a question was asked on professional ethics where CA failed to disclose a charge created against Corporate Guarantee.
I mentioned clause 5 & 7, part 1, 2nd schedule failure to disclose a material fact and gross negligence respectively and also SA 320 Materiality. My answer almost matches with the suggested answers except that in suggested answers clause 7 is not mentioned. But still the evaluator awarded 1.5 marks only. Is it because of writing an extra clause? Does gross negligence not apply here?

1 Answers
RaviRavi Staff answered 1 year ago

In 90% of PE answers only specific clause is expected, this is old and repetitive nature question, only clause 5 was expected.
Giving many references, gives impression that student doesn’t know perfect answer and is doing guess work.
So you should answer giving specific clause where you are confident.
After giving conclusion and the end you can give additional points which can be relevant 1 liners, if you think that any thing else is also relevant, as extra comment. 

RaviRavi Staff replied 1 year ago

Always generate answer from what you have see in question banks, rather than own free thinking imagination. I know its good but it wont fetch good marks.

Call Back Request