CA Inter Must To Topics and Questions
CA Inter Must To Topics and Questions ● C7
These are some important topics not to be missed. Also, this is ○ SA 560
not a substitute for complete overall study. These will cover 70 ● C9 - 8 to 10 marks
to 80% marks ○ Cooperative Society - Detail
○ LLP - Detail
Top Priority ○ Other entities - Refer revision videos only
● C1, 11, 2, 6 (All topics) - 30 to 32 Marks ■ Hotels
○ Easy ■ Cinema Halls
○ Direct ■ Clubs
○ High Scoring ■ Partnership Firm
● C4 - 12 to 15 marks ■ Lease
○ High Weightage Topics Covering 9 to 12 marks ■ Hospital
■ SA 500, SA 501, SA 505, SA 610, Audit Trail ■ Remaining entities
● C3 - 12 to 15 marks ○ Government Audit - Refer Revision Videos only
○ High Weightage Topics Covering 7 to 9 marks
Chapter 5 - 18 to 19 marks
■ Cover SA 320 Fully ● Good conceptual understanding of Assertions is required
■ 315, 330, Internal Control, Audit Risk - Cover ● Special Focus on Topics
all easy and direct questions. That’s it. ○ Audit of Share Capital
■ Now we are at 46 to 53 Marks ■ Application of Securities Premium Account
● Chapter 8 - 10 to 12 Marks ■ Share Issue at Discount
○ CARO 2020 (3 to 4 marks) ■ Sweat Equity Shares
○ SA 299 ■ Reduction of Capital
○ 700 (Revision Videos),705,701 ○ Audit of Borrowings, Trade Receivables, Cash and cash
○ 706, 710 - Refer Revision Videos Only equivalents, Inventories, Tangible Fixed Assets, Trade
○ Reporting Requirements under the Companies Act, Payables, Provisions & Contingent Liabilities, Sale, Other
2013 Income, Depreciation, Other Expenses
○ 54 to 63 Marks ○ Benami Property
● C7 - 10 to 12 Marks ○ Struck off company
○ SA 570, SA 580, SA 260, SA 265, SA 450 ○ Crypto
○ 61 to 72 marks ○ CSR
● C10 - Complete Chapter 8 to 10 marks (Revision Video ○ Ratio Disclosure requirements
Plus Question Bank) ● Special Focus on Latest RTP and MTP
● Important questions list provided below.
○ Special Focus on Advances - All Topics, Drawing
power
Check out this video on how to study chapter 5-
○ Special focus on Case Study Based MCQs
https://www.youtube.com/live/XWUP4p-t2UQ?
○ Now we are at 69 to 82 marks approx si=015fGinMJq8iRA3m
Second Priority
Priority of Descriptive Questions – Sources to Cover
● C3 1st Priority
○ Cover Automated Environment from Revision Video ICAI Study Material, Suggested Answers (Last 3 attempts)
● C4 Recent RTP, MTP1 and MTP2 (of last 3 attempts)
○ SA 520 - Selective question based 2nd Priority
○ SA 530 - Selective and question based. Extra Questions from the Question Bank
○ SA 550 - Complete - Refer Revision Video only
○ SA 510 - Complete - Refer Revision Video only Important Questions of Chapter 5
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CA Inter Must To Topics and Questions
Audit of Share capital 6. Droma Shoes Private Limited was established
1.ABC Ltd. has issued shares for cash at a in year 2022-23 for manufacturing of
premium. Section 52 of the Companies Act, footwear. As funds were needed to carry on its
2013 provides that a Company shall transfer business activities - including for purchase of
the amount received by it as securities different raw materials, incurring of regular
premium to securities premium account. expenses like power and fuel and payment of
Advise the means in which the amount in the wages etc., it had got sanctioned a credit
account can be applied. facility amounting to ₹ 2 crores repayable on
2. Management of D Ltd. has issued shares at a demand from a bank against primary security
discount to its creditors. Explain the of its current assets and collateral security of
provisions of the Companies Act, 2013 when residential house of one of its directors. Duly
shares are issued at a discount to creditors ? signed guarantee documents by directors in
As an auditor what will be your concern of favour of bank also form part of bank’s loan
checking in such a case ? documentation. Account statement of above
3. What audit points are to be borne in mind in facility downloaded from bank’s website shows
case of issue of “Sweat Equity Shares” by a debit balance of ₹ 1.85 crores as on 31st
limited company? March, 2023. The operations in above credit
4.BNP Ltd has reduced its Share Capital to a facility are satisfactory. In this regard: -
greater extent in the year for which you are (i) Identify the nomenclature of such credit
conducting the audit. State how will you facility given by banks. How would above
proceed for verifying the reduction of Capital. amount of ₹ 1.85 crores be reflected and
classified in financial statements of company
Audit of Borrowings as on 31.3.23?
5. The financial statements of XYZ Limited show (ii) Also state specific disclosure requirements
long-term borrowings from the banks, of Schedule III of Companies Act, 2013 in
financial institutions, leasing, and hire relation to above
purchase companies. Additionally, the company
has issued debentures to its 1000 members to Audit of Trade Receivables
raise funds in accordance with the provisions 7. It is important to carry out the Tests of
of the Companies Act, 2013. The money raised Controls for checking effectiveness of
by issuing debentures is also reflected in long- internal control over sales as a part of the
term borrowings. As the statutory auditor of debtors’ audit procedure. In above context,
XYZ Limited, CA X wants to verify that all state the points which need to be considered in
borrowings on the balance sheet represent respect of trade receivables
valid claims by banks or other third parties. 8. While auditing books of accounts of SOLAR
Suggest a few audit procedures in this regard. Ltd., you observed that an amount due from a
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CA Inter Must To Topics and Questions
debtor for invoice issued on 31.03.2024 has not in the balance sheet as on March 31, 2024.
been recognized in the books of accounts. As What audit procedures should you perform to
an auditor, you want to ensure that all trade verify the company’s ownership of the
receivable balances that are supposed to be inventories, including items stored at third-
recorded have been recognized in the financial party locations?
statements. How will you achieve the stated 12. During the audit of HST Ltd., CA Mukund, the
objective? auditor, observed a significant volume of
9.CA J is appointed as statutory auditor of Sigma unsold electronic parts as inventory that had
and Beta Limited for the year 2023-24. During remained stagnant for more than two years.
the audit he observed trade receivables He noted that the company was facing
amounting to ₹ 50 crores are reflected in the difficulty selling these items due to the
financial statements of the company. He wants changes in the market. Additionally, some
to obtain sufficient appropriate evidence to parts were damaged, and others were
conclude that trade receivables have been discontinued models. CA Mukund also ensured
valued appropriately. Suggest a few audit that the inventory was accurately valued to
procedures in this regard. ensure proper financial reporting. You are
required to outline the detailed audit
Audit of Cash and cash equivalents procedures that are generally undertaken when
10. While verifying cash and cash equivalents of a auditing such inventories which at the time of
company, CA D engagement partner, is very observance of physical counting were noted as
particular that Bank reconciliation statement being damaged or obsolete
(BRS) prepared by the management in respect 13. Zed Limited is engaged in the manufacturing
of bank account maintained by the company is and export of shoes. The statutory auditor of
proper to rule out misstatements in cash and the company wants to reasonably ensure that
cash equivalents reflected in the financial only the inventories recorded in the financial
statements of the company. The company does statements are exclusively owned by the
not use net banking and prefers to issue company and do not include any inventories
cheques to its creditors and receives that belong to third parties but includes
substantial payments locally through account inventories owned by the company but lying
payee cheques. Which aspects need to be taken with third party. Advise the auditor on the
care of and verified by CA D in respect of BRS? audit procedures to be performed to achieve
this assurance.
Audit of Inventories
11. As the statutory auditor of Ginni Ltd., you need Audit of PPE
to verify if the company has valid legal 14. Mr. Vaayu is appointed as the auditor of PRISM
ownership rights over the inventories recorded Limited for the year 2023-24. He wants to
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CA Inter Must To Topics and Questions
ensure that the PPE has been valued Audit of Other Income
appropriately and as per generally accepted 19. ABC limited appointed XYZ & Company,
accounting policies and practices and also that Chartered Accountants, as a Statutory Auditor
PRISM Limited has valid legal ownership rights of the Company for the year 2023-24. CA X,
over the PPE claimed to be held by the partner of XYZ & Company, was looking after
company and recorded in the financial the audit of other income of the company
statements. Explain how the auditor will verify which consists of interest income on fixed
the same. deposits. As a Statutory Auditor how would CA
X verify interest income on fixed deposits for
Audit of Provisions and Contingent Liabilities the year 2023-24?
15. CA Q, the auditor of XYZ Ltd, while conducting 20.As a Statutory Auditor of the company list out
audit observes that the company has made audit procedure required to be undertaken for
various provisions in the books of account. the recognition of following other income:
What are the audit procedures that CA Q will Interest income from fixed deposit, Dividend
follow to verify the existence, completeness, income and Gain/(loss) on sale of investment
and valuation of the provisions made ? in mutual funds.
Audit of Sale of Products and Services Audit of Depreciation and Amortisation
16. You are part of engagement team conducting 21. Depreciation and amortisation expense
audit of an entity engaged in manufacturing generally constitute an entity's significant
business. State few audit procedures you would part of overall expenses and have direct
undertake to perform to verify that recorded impact on the profit/loss of the entity. What
sales in financial statements represent goods are the attributes, the Auditor needs to
actually sold during the period and recorded consider while verifying Depreciation and
sales are not overstated. amortisation expense.
17. While checking sales of the client, the auditor
has to ensure that all sales are accurately Audit of Other Expenses
measured as per applicable accounting 22.M/s SS & Associates have been appointed as
standards and correctly journalized, statutory auditors of Green Limited, a
summarized, and posted. Explain the audit company engaged in the business of
procedures to ensure the same. manufacturing of hardware products. They are
18. Discuss the audit procedures generally analyzing the monthly trends for other
required to be undertaken by the auditor while expenses like rent, power and fuel, repairs,
auditing Goods sent out on Sale or Return etc. and are also verifying attributes of such
Basis. types of expenses. List down the attributes for
verifying such expenses.
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CA Inter Must To Topics and Questions
Disclosure Requirements Name of ratio 31.3.2024 31.3.2023
23.Proceedings have been initiated against False
Current ratio 2.50 2.30
Limited for holding benami property under the
Inventory turnover 3.00 6.00
Benami Transactions (Prohibition) Act, 1988
ratio 1.75 5.00
(45 of 1988) and the rules made thereunder,
but such property is not recorded in books of Trade receivables 13% 10%
accounts. As a consultant to the company, turnover ratio
what will you advice to the company as far as Net profit ratio (in%)
disclosure requirements are concerned in
relation to said proceedings?
24. B Ltd. is covered u/s 135 of the Companies
Act, 2013 i.e. Corporate Social Responsibility
(CSR). What matters (other than the amount
spent, amount not spent, amount required to
be spent etc.) shall be disclosed by the
company with regard to CSR activities done by
the company?
25.Mercury Ltd. is a company engaged in the
manufacture of floor mats. The company sells
its goods on credit. The debtors balance as on
31.03.2024 amounted to ₹ 20 cr. What is the
disclosure requirement as per Schedule III to
the Companies Act 2013, with respect to the
ageing schedule of debtors of the company?
26. What are the required disclosures for cash &
Cash equivalents to be made by the company
as per Schedule III (Part I) to Companies Act,
2013?
27.Following is an extract of notes to accounts of
financial statements of STU Private Limited
listing some ratios. Discuss, whether
disclosure, given in following manner meets
requirements of Schedule III of the Companies
Act, 2013. Ignore other ratios which are not
listed in extract given below:
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