The Hindu Business Line : How to go about CA Examinations

There is a holiday between accounting and auditing paper. After returning after writing Accounting paper on May 2, candidates would do well to revise the costing paper. Costing and Financial Management have been nightmares for the candidates in the recent past and they would be have been happy with a break for costing paper. But that is not to be. Instead, the gap between Accounting and Auditing paper can be utilised to revise for Costing and FM paper. The rest of the day on two and for the half of day on three may can be used for costing paper. Auditing may be revised from noon of May 3.

In the normal course, revise Costing and FM after writing the auditing paper.

The two-day gap is between Costing and the Income-Tax paper. Use this time to thoroughly revise the Income-Tax and CST Paper.

The half-day after writing costing paper can be utilised to revise the Information Technology paper.

This would supplement the time available after writing the Income-Tax paper. Devote May 7, 8, and part of 9 to revise the Income-Tax paper.

On last-minute preparation, one would do well to concentrate on the following areas:

Accounting: In the last examination, no question was asked on banks and insurance companies. One would be considering these two on a high priority this time. In addition, the following topics may be considered: Statutory report, managerial remuneration, piecemeal distribution in partnerships (involving Garner vs. Murray), branches (involving foreign branches), banks, insolvency accounts, Accounting Standards.

Auditing: There would be stock questions on audit procedures — vouching and verification. It is the usual pattern that two practical questions — one on Standards and the other on Company Audit — are asked. One should, therefore, be thorough on these two topics. In addition, the following topics need attention:

Surprise checks, Branch audits, Audit of incomplete records, Audit of a cinema, Audit and assurance standards, Audit of income in government audits, Accounting Standards (particularly up to 16 and Audit Standards are of great importance).

About 100 marks worth of questions appear from these standards between the papers of Accounting and Auditing.

Following Accounting Standards are important from Auditing paper point of view:

AS 2 Inventories; AS 6 Depreciation; AS 9 Revenue recognition; AS 10 Fixed assets (this would any way be needed to answer question on valuation of assets); AS 11 Accounting for fluctuations in foreign currency; AS 16 on borrowing costs.

Costing: The costing paper is any body's guess. Perhaps Material, Process costing, Overhead absorption, Activity based costing would be the regular fare.

In Financial Management, stress could be on leverages, cash flows, cost of capital.

Income-Tax covers 75 per cent of the Tax paper while CST covers the rest. Income-tax may lay stress on fringe benefit tax, security transaction tax, perquisites by way of loans at concessional rates, providing of laptops, mobile phones, etc.

One would do well to study pre-assessment and post-assessment taxes payable. It is my usual advice to the students to weigh carefully the time spent on profits and gains of business and profession.

Do not over look CST. It is a small subject and covers 25 per cent of the paper. Stock questions are:

Goods in the course of inter-State trade

Crossing the Customs frontiers

Registration under CST

Sale in transit and documentation

Assessments, appeals and revisions.

(To be continued)

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