Hello
I am not writing this message, as a professor but as a observer. Further many things change from student to student, i am writing this message taking into consideration , average student in audit and experience of more than 10 years in teaching.
Across the year i am flooded with students asking me simple question why I didn’t clear audit or why I scored less in audit?

  1. Self Study

There is no substitute to self study, you are sole performer in exams, there is no support of anyone when you write paper. So you need to understand, you need to remember you need to write. you need master subject. Quantum can change depending on grasping power, memory power and ability to concentrate for long number of hours.

2. Volume
Audit is voluminous subject 22 chapters, out of which one chapter includes 45 standards , Module & Notes are generally between 800-1000 pages + around 591 questions in PM (Old Course , As all chapters of new course module & pm are not released)

3.Tricky
It includes variety it includes different types of entities right from General Insurance / Stock Exchange / Mutual Fund / Co-Operative / Bank Audit etc . Different types of Assignments Tax Audit / PSU Audits etc
SAs offer altogether different world of auditing.
Now Articleship offers limited exposure in 1 or 2 areas, and way we do auditing is different from SAs. This makes subject challenging to understand.

4.Results
As per estimates if 100 people fail in group 1 ,60-70% because of audit. I have seen group leaders doing audit of listed companies scoring 28 and giving multiple exams to clear audit subject.

5.Different from Practical & Law
Theory subjects like Audit (800-1000 pg) & ISCA (300 – 400 pg) are challenging because it is 50% understanding and 50% retention. In practical it is 80% understanding 20% retention. Further practical and law are good as we can compare and differentiate different methods and sections. In audit & isca there are plenty of factors for each step of point, and points look similar to other topics. So it becomes big challenge to differentiate / retain and reproduce. IPCC Grp2 results were low, one of the reason was 2 deadly subjects of audit and ITSM in one group and also Articleship pressure.
Only overall / raw understanding of topic is not going to fetch marks, understanding each factor and retaining it and reproducing it is important thing.

6.Student perception & approach
They allocate one week to 20 days for the subject and some may allocate 40 days also. So that goes to 800/40 = 20 pages. Reading / Understanding / Research Behind Topic / Hunting Examples / Thinking about retention techniques and doing writing practice. That too few hours in hand many times because of Articleship

7.Is doing classes a bad thing?
I was a rankholder I went for all subject classes and I guess same is the case with many other rankholders and CAs. In this world, where we have less time we need apt guidance to make ourselves efficient & effective. We go to gym, we go for trainer so that in less time we get our body healthy. Further how much it costs to for class 5000-8000, if there is financial problem, people may help you out. What you gain is knowledge , techniques which saves your time, gives more time for overall studies and increases your probability of clearing exams drastically.

Solution
Go for proper class / lecture 120 – 150 hours. Do regular self study for 80- 100 hours. Use all examples . charts , techniques provided . do revision / writing practice you are prepared for exams. Never ever do preparations in haste, it will cost you few attempts,  because once you prepare it defines your understanding , depth attitude and approach towards subject. Then its very difficult to change it unless you give loads of time.
Lectures + Notes + PM + RTP should be the Study Plan

Conclusion
You need to assess yourself, scores of ipcc audit cannot be base, I meet n number of students who scored exemption in ipcc audit and now struggling to clear ca final audit for 3-4 exams. You can assesses whether you can clear it with self study.
Read SA 300 series / 400 Series / EDP / General Insurance and write down then attempt questions from PM it will be good taste.
Our books are designed in such a way that they are effective along with live lectures or videos, because we follow notes extensively as we teach.

Please be open to share your thoughts, will take it in consideration

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Can CA in Practice do Business Through HUF?

Students and Professionals generally both have curiosity to know whether HUF route is open for doing business for CA in practice. People feel restricted when they realise technically they cannot do business along with practice.

So here is GIST of the matter – CA in practice can be member of HUF, where business is being carried. But he cannot be karta of HUF or Representative of HUF for business. If he is karta / representative, then specific permission will be required and their he will have to prove that he is not actively engaged in business , but then he will be considered to be in part time practice.

Further if business comes to him as share of HUF because of his relation then also above thing will be applicable.
If it would have been allowed, it would have been big loop hole which all CAs would have happily implemented. Practically everything is fine till we or anyone inform ca institute, there is no mechanism to detect it.

Requirement under Regulation 190A
Permission to be granted specifically:
Members of the Institute in practice may engage in the following categories of business or occupations, after obtaining the specific and prior approval of the Council in each case:-

  • Interest in family business concern or concern in which interest has been acquired as a result of relationship and in the management of which no active part is taken.
  • Above Specific Resolution would be equally applicable to member carrying out the activities referred to therein in his capacity as Karta/representative of HUF provided he is not actively engaged in carrying on such activities.

 

Past Cases
1. Where a Chartered Accountant acted as karta of a Hindu Undivided Family (HUF) without taking prior permission of the Council. Held that he was inter alia guilty of professional
misconduct under the clause.
(B.L. Asawa, Chief Manager, Punjab National Bank, Delhi vs. P.K.Garg – Page 728 of Vol. IX – 2A – 21(4) of Disciplinary Cases – Council’s decision dated 16th to 18th Sept. 2003)

2. Where a Chartered Accountant was Karta of the HUF and was engaged in the business of a firm without permission of the Council. Held that he was guilty of professional misconduct under the Clause.
(V. Krishnamoorthy vs. T.T. Krishnaswami – Page 192 of Vol.VII(2) of Disciplinary Cases – Council’s decision dated 27th to 29th September, 1992)

3. A member as a Karta of his Hindu Undivided Family entered into partnership business for a short period with non-Chartered Accountants for engaging in business other than the profession of Chartered Accountants, without prior permission of the Council. Therefore, he was found guilty in terms of clauses (4) and (11).
(R.D. Bhatt vs. K.B. Parikh – Page 191 of Vol. VI(2) of Disciplinary Cases – Decided on 15th, 16th and 17th December, 1988)

4. While applying for membership and Certificate of Practice, a Chartered Accountant did not report that he was a partner in his family business. Held that he was guilty of professional misconduct within the meaning of the Clause.
(Baijnath Agarwalla vs. Gopinath Aggarwalla – Pages 426 of Volume VIII (2) of Disciplinary Cases – Council’s decision dated 26th to 28th August, 2001)

CA Ravi Taori
ravitaorisir@gmail.com

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How to complete 100% AUDIT paper in 3 hours??

Every day I get lot of messages from students asking for tips to complete 100%paper in 3 hours. So I have tried to list down certain tips which should be beneficial for all the students. These small tips will help you perform better in your exam.

Watch Video – https://youtu.be/KZkfXUBvPgg

TIPS TO COMPLETE 100% PAPER

 

  1. 60-40 Rule

First of all, try to understand that, writing 100% paper with 100% quality is not possible. It is a myth that you can complete full paper and do justice to all questions equally. So now what do we do?

Divide your paper in 60-40. First 60 marks you should write very nicely. You should write in depth answers of the same. Answers should be written in such a way that the examiner is impressed by them. It should cover all the important and necessary points. These answers should be perfect in every possible manner.

But you will attempt these 60 marks in first 2 hours i.e. 120 minutes. That means you will have 2 minutes for every 1 mark. For example if you have are solving 5 marks question, then you have 10 minutes to solve it or if you have 6 marks question you have 12 minutes. So these 60 marks should be attempted in the best possible way. So if you score 80% in these 60 marks it will be 48 marks, which is a fair score. Even if you score 75% that comes to 45 marks.

You will solve remaining 40 marks in 1 hour that means 1.5 minute for every mark. If you take 45-50 minutes it will be very beneficial. This way even if you score 1 mark in every question totaling to 10-15 marks from these 40 marks. It will be a good attempt. This way you will be able to attempt 100% paper.

 

  1. Last Page Rule

As soon as you get the answer sheet, go to the last page. Here write down all SA numbers, CARO clause numbers, tax audit clause numbers, professional ethics clause numbers. If you are from IPCC then write down companies act sections. Write down everything that is difficult to remember. Otherwise what happens when you start writing the paper you just become blank. You think I just knew the clause number but right now I am not able to remember it. You get confused and tend to write wrong clause numbers. Writing them down on last page will help you write correct numbers and clear your confusions whenever needed.

 

  1. Used Pen Rule

You should try to use a pen you have already used earlier. Do not try a new pen. Used pen is smoother and you are used to writing with it. So your speed will be faster with that pen. Actually I have even seen many students and even toppers use those 2-3 rs pens. These pens I suppose are very lighter and they glide faster. So it gives good speed toy your writing.

 

  1. Use of Writing Pad

This is an unusual tip. But if it helps then its good. I have heard someone giving this tip so thought of sharing with you.

Try to keep 2-3 pages between the page you are writing on and your writing pad. You answer sheet is of 30-32 pages. So when you keep such a big bunch of papers underneath it becomes very soft and this may reduce your speed of writing. So keeping just 2-3 pages would help you to improve your speed and save time.

 

  1. Avoid Distractions

Please try to avoid any kind of distractions whatsoever. Forget everything and anything around you. Because you are in a deep thought when you are writing your paper. So when you get distracted it takes a lot of time to again concentrate and come back to the place from where you got distracted.

 

  1. Solve easy ones first

One of the popular tips. Please solve the easy questions first. But do not spend lot of time on them Keep in mind that you have 2 minutes for every mark. You cannot be spending more time on these easy ones.

 

  1. Difficult questions

It generally happens with students that they give too much time to some difficult questions which disrupts their flow of writing the paper. So please be very cautious and careful while spending time on the difficult questions. Please follow or 60-40 rule while giving time to the questions.

 

I hope these tips help you to achieve greater milestones. Best of Luck.

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