CA Ravi Taori www.auditguru.

in

Hello IPC gang , after research we have come up with important topics in each chapter and each SA. Apart from these I have also mentioned most important SA assuming
ICAI is going to ask those which are not asked in past 3 or 2 exams (See Last Page). Cover these topics first , focus more on them and then other topics, use PM analysis file
on auditguru.in/downloads (use google login) to cover PM efficiently and effectively. 50% paper will be from PM

Chapter SA Nov-15 May-16 Nov-16 Average Important Topics

Company Audit I 22 6 18 15 All sections important. Specially amendments
Company Audit II 16 2 6 All sections important. Specially amendments
CARO 6 2 Applicability / Cl 1,2,6,7,8,9,10
CAG related regulations / duties of CAG / audit of expenditure / propriety
Government Audit 5 2 audit / performance audit
SA Intro 4 1 Types of Standards / Audit Vs Review / Process of Issuing Standards
Objectives of Audit / Professional Scepticism / Ethical Requirements /
SA 200 2 4 2 Independence
Pre-Conditions / Mandatory Clauses / Recurring Audits / Change in
SA 210 5 2 Engagement Letter / Change from Audit to Review
SA 220 0 Outline of SA 220 as given in PM
Importance , Advantages of Working Paper / Factors Affecting Form Content
Extent / Permanent Vs Current / Ownership of Working Paper / Audit Note
SA 230 8 6 2 5 Book / Lien

Types of Fraud / Fraudulent Financial Reporting / Miss-Appropriation of

Assets / Fraud Risk Factors / Auditor Responsibility for Frauds / Teeming &
SA 240 6 2 Lading / How to detect fraud in cash ?
Responsibility of Auditor / Direct Effect / Factors Indicating Non Compliance
SA 250 0 / Steps if Non Compliance is Noticed
Matter to be communicated to TCWG / Significant Difficulty / Factors
SA 260 0 Affecting form of communication
Steps if Deficiency is Identified / Reporting / Content of Letter (Management
SA 265 4 1 Letter, Letter of Weakness)
Advantage & Disadvantage / Division of Work / Co-Ordination /
SA 299 6 2 Responsibilities / Separate Reporting
 Preliminary Engagement Activity / Audit Strategy / Audit Plan / Audit
SA 300 5 2 Programme / Advantages & Disadvantages of Planning

Types of Risk & Relationships / Understanding Entity & Its Environment /

SA 315 5 2 Components of ICS / Assertions / Identifying & Assessing Risk
Short Note on Materiality / Benchmarking / Performance Materiality /
SA 320 9 3 Revision of Materiality
Overall Response, Test of Control / Substantive Procedures / Factors
SA 330 4 2 2 affecting use of external confirmation as substantive procedures
Obtaining Understanding of Outsourcing / Type 1 & Type 2 report / Sub
SA 402 0 Service Organisation
Misstatement Definition & Reasons / Types of Misstatement / What to do
SA 450 0 when misstatement is noticed ?
Factors Affecting Sufficient & Appropriate / Methods of collecting evidence /
SA 500 6 2 2 3 Reliability of Audit Evidence / Specific Item Selection
SA 501 0 Inventory & Litigations . Claims all points

External Confirmation Definition , Examples / Procedure / Designing / When

to go for negative confirmation / factors affecting reliability of external
SA 505 4 1 confirmation / what if management refuses
SA 510 0 How to audit opening balance in initial audit engagement ?
Factors while applying analytical procedures / factors affecting suitability /
SA 520 0 factors affecting reliability of data
Sampling , Non Sampling Risk / Sample Designing / Factors Affecting
Sample Size / Sampling Methods / Precautions while sampling /Nature &
SA 530 11 2 4 cause of deviation, misstatement
Definition & types / Risk assessment procedures / factors affecting
SA 540 0 uncertainty
Definition of related party / Documents which can give related party
SA 550 5 2 information / outside normal course of business
Definition of subsequent event / auditor responsibility before signing and
SA 560 0 after signing audit report
Events & Conditions Creating significant doubt (financial / operating / other)
SA 570 0 / additional procedures / reporting
Definition / Types / No Misuse / Date & Period / What if management
SA 580 4 1 refuses
 Factors before accepting audit for principal auditor / role of principal auditor
SA 600 0 / liaison between principal and branch auditor / division of responsibility
 Scope of Internal audit / Use of Work / Taking Assistance / Evaluating
SA 610 2 5 2 Internal Audit Function
Types of expert / areas where expert is required / selection / agreement /
SA 620 0 evaluation of experts work / reporting
Elements of Audit Report / Types of FRF / Supplementary Information / True
SA 700 5 2 & Fair View
SA 705 4 2 2 Types of Opinion / Basis of Modification Para
SA 706 0 EMP / OMP
SA 710 0 Audit Procedures for comparative / types of approaches
SA 720 0 Material Inconsistency / Material Misstatement of fact

All topics important. Use trick, imagine transactions from start till end, it will
Vouching 20 12 16 16 be easy to recollect all documents , registers and other points
All topics, Use trick "ERVCD" Existence, Rights & Obligation, Valuation,
Verification 4 4 4 4 Completeness , Disclosure & Presentation
AS 6 / 9 / 10 & Sch III Questions in PM use PM analysis file on
AS / Sch III 4 10 12 9 auditguru.in/downloads
All topics use trick Constitution / Major Income / Major Expense / Major
Special Audits 12 4 Assets / Special Points

First 3 Chapters
(Content Other Than Covered in SA)
Basics of Audit / Concepts in Auditing Basic Principles Governing Audit / Continuous Vs Final Audit / Procedural
(In our Book) 13 10 8 Error / Audit Vs Investigation / Surprise Checks

Tools of reviewing internal control system / Procedural Tests / Examination In-

Internal Control 6 6 4 depth / ICS in small business / Inherent Limitations / Internal Check
Impact of EDP on information processing system & on auditing / Audit Trail /
EDP 9 5 5 General Edp controls / Approaches to EDP / CAAT
Audit of share capital / sweat equity / buy back / share transfer audit / bonus
Audit of Share Capital & Debenture 4 6 3 shares
Misc. 10 3
120 124 124 123
 Most Important SA & Topics
1. On the basis of not being asked for past
3 attempts 220 / 250 / 260 / 402 / 450 / 501 / 510 / 520 / 540 / 560 / 570 / 600 / 620 / 706 / 710 / 720
2. On the basis of not being asked for past
2 attempts (apart from above) 240 / 299 / 210 / 315 / SA Intro

2. On the basis of regularly targeted by

ICAI on the basis of past 3 attempts Co Audit I / II / CARO / Vouching & Verification / Special Audit