Are you worried about how to commence your preparation for the CA Intermediate Group 2 papers? Then this article is especially for you.
In this article, we’ll be sharing the preparation strategy for the CA Intergroup 2 papers, including which topics to cover with their marks weightage and the study plan to cover those topics.
According to the CA Intermediate group 2 papers passing criteria, students must obtain 40% marks in each subject and 50% aggregate to clear a group. So, study according to the following preparation tips and clear the exams on the first attempt.
You can also check the subject-wise study plan & preparation strategy for CA Inter group 1 papers.
CA Inter Group 2 Papers:
- Advance Accounting (100 Marks)
- Auditing and Assurance (100 Marks)
- Enterprise Information System and Strategic Management (100 Marks)
- Financial Management and Economics for Finance (100 Marks)
Check the CA Intermediate eligibility criteria to register for the course.
Furthermore, you can also check the complete details of CA Intermediate Registration June 2024.
How to Prepare for CA Intermediate Nov 2023 Group 2 Papers?
Preparation Tips for CA Intermediate Group 2 Papers – Advanced Accounting
Topics Covered in Advanced Accounting
- Accounting Standards (AS – 7, 9, 14, 18, 19, 20, 24, 26, 29)
- Application of Guidance Notes on specified accounting aspects.
- Special aspects of company accounts (ESOP, buyback, Underwriting)
- Re-organization of companies (Amalgamation, reconstruction and Liquidation)
- Financial Reporting of Banking, Financial Services and Insurance (BFSI) (Insurance co, Banking Co, Non-Banking Co, Mutual Funds).
- Valuation of Goodwill
- Consolidated Financial Statements
Start with the Accounting Standards as they are much easier compared to other topics and also very much scoring. At the Intermediate level, they will cover around 20 marks. From the above, AS – 7, 9, 20, and 26 are the easiest.
Note: Check all the details of CA Inter Nov 2023 admit card
Advance Accounting Important Topics for Nov 2023 Exam
There is always a question about the Re-organization of Companies carrying 8 – 16 marks in the paper, either from the Amalgamation or Internal Reconstruction. Amalgamation not only covers Group – 2 but also covers Group – 1. It is probable that if there is a question in the Group 1 “Accounting” paper from Amalgamation carrying 16 marks, then there will be a high chance of Internal Reconstruction in the Group – 2 Advance Accounting paper.A
There must be at least one question from the Buy Back, Underwriting or ESOP carrying eight marks or two questions of 4 marks each and are generally easy to prepare. The higher probability is of buying back.
Companies Accounts, on average, carry 30-35 marks, and practice can make you perfect in such. Issue and Redemption of Debentures are as important as scoring.
Banking company accounts like NPA, rate of provision P&L account covers around 5-8 marks.
Questions from the Insurance Companies are expected which will carry around 8-10 marks. Branch Accounting is also important.
It is generally advisable to cover the partnership accounts at last because they are lengthy, time-consuming and not easy to prepare. However, it carries around 16 mark questions in each attempt. So, don’t skip it, but cover the easier part first.
It is advised for all the students to go through the previous year’s CA Inter question papers to know the types of questions asked in the Advanced Accounting question papers and the paper pattern. To check the CA Intermediate exam pattern for Advanced Accounting and other papers, click on this link.
CA Intermediate Group 2 Papers – Strategy for Auditing and Assurance
The most awaited subject in the CA Intermediate Group 2 Papers is “Auditing and Assurancea”. The subject is not that easy and also not much scoring. But you have to read each and every topic as this is the basic work of a Chartered Accountant, and everyone has to perform the audit in their office during practical training as soon as they clear the CA Intermediate.
Topics covered in Auditing & Assurance
- Nature, Objective and Scope of Auditing.
- Audit Strategy, Audit Planning and Audit Program.
- Audit Documentation and Audit Evidence
- Risk Assessment and Internal Control
- Fraud and Responsibilities of the Auditor in this regard.
- Audit in an Automated Environment.
- Audit Sampling
- Analytical Procedures.
- Audit of Items of Financial Statements
- The Company Audit
- Audit Report
- Audit Banks
- Auditing of Different Types of Entities.
There is so much confusion among some students that in an Audit paper, you have to write the bookish language. But this information is totally false. The language you are using in your paper is first to imprison the examiner, so you must have a command over the language, either English or Hindi. You can use your own language but there are some Keywords in your answer which should not be replaced anyhow. For example, the true and fair view should not be replaced by the correct opinion.
You can start with the Standards on Auditing as they cover 15-20 marks paper. They are easy and also scoring, but you should always remember the name of the Standards. Some important SA’s are SA 230, SA 330, SA 450, SA 505, SA 520, SA 610, SA 710.
Company Audit should be the top priority. This chapter is damn easy to read and retain and also very much scoring. It covers, on average, 30 marks in your paper.
Other important topics are as follows –
- Special Audits related to Club, NGO, Partnership firms, Educational institutions, Hotels, Cinema Halls, hospitals, sole proprietor etc.
- Vouching and Verification of Cash, Depreciation, Tangible and Intangible assets.
- Risk Assessment and Internal Control covering Audit Trail, Audit Risk.
- Preparation of Audit Report featuring with Audit techniques, Audit Programme, Audit Sampling, Continuous Audit, Letter of Engagement, Management Representation.
- Inherent Limitations of Audit, Operational Audit, Detection of Fraud and Errors.
- Audit Documentation and Audit Evidence covering SA 220 and 230.
Presentation of answers in Audit covers good marks. Always write your answer in points or short para. Underline the important keywords.
Start your answer with the proper analysis of the question, then write the provision regarding that, and end your answer with the proper conclusion.
Check the complete CA Intermediate syllabus for the Nov 2023 exams.
Study Plan for Enterprise Information System and Strategic Management
This subject is equally divided into two sections: Information Technology (IT) and the other one is Strategic Management (SM). SM is considered as scoring and easy, while IT is difficult to learn and retain.
Topics covered in IT & SM
- Automated Business Process.
- Financial and Accounting Systems.
- Information system and its components.
- E-Commerce, M-Commerce and Emerging Technologies.
- Core Banking Systems.
In Enterprise Information systems, the highest scoring and the easiest topic is Flowchart and Decision Table. A question covering 8 marks is generally seen in the paper. Most of the time, the question that arrives in the exam paper is from the ICAI CA Intermediate study material, either the study material or the practice manual.
The problem generally faced by the students is lack of revision, which makes them blank in the exam even after studying a lot, so revise it daily.
Many of the students have a perception that this is a complete learning subject, but no, this is not true. You need to understand the para before learning. Otherwise, it cannot be retained in your mind longer.
Don’t stick to a single topic for the whole day. If you are not getting that topic, then move on and mark it so that you can take the help of your teachers.
Make a summary of the chapters. Chart format is preferable because at the exam time, revision of the entire course is not possible from the book. So, be ready with the summary notes.
A good command of the language matters a lot, especially in IT and SM. The presentation must be good enough to get the marks. Practice writing answers at home and match them with the institute material or suggested answers.
SM is considered easy in comparison to IT, but resultant checking in SM is tough compared to IT.
Thoroughly complete the VSI compiler and read the practice manual as many times as you can.
Must Check: CA New Scheme 2024
Study Plans for Financial Management and Economics for Finance
The subject is divided into two sections: one is Financial Management, and another one is Economics for Finance. Financial Management covers the major part consisting of 60 marks, and Economics for Finance consists of 40 marks.
The subject is newly introduced. Financial Management was part of the first group and has now become a part of the second group with Economics for Finance.
Topics covered in Financial Management
- Financial Management and Financial Analysis (Introduction and Analysis through Ratios)
- Financing Decisions (Sources of Finance, Leasing, Cost of Capital, Capital Structure, Leverages).
- Capital Investment and Dividend Decisions (Capital Investment, Adjustment of risk and Uncertainty in capital budgeting decisions, dividend decisions)
- Management of Working Capital=
Start from the basic theory and formulas of the chapters so that you can easily solve the questions. Try to understand the making of formulas so that they will be retained in your mind for a longer period.
You can start with the Cash Flow and Fund Flow, the most important topic. You will definitely find a question either from the Cash Flow or the Fund Flow.
Then take a short chapter to build confidence i.e. Leverage, a formulae-based chapter, but if your concepts are clear, and you understand the formulas rather than learning it, then it is the most simplest and shortest chapter.
Then you can go with Capital Budgeting and thoroughly prepare the sums on Payback period, PI, ARR, NPV and IRR. Each and every method is important, but among all the topics, NPV and IRR are quite more important so prepare them very well.
Again, pick a short chapter, Ratios, a formula-based chapter so read and understand the formulas first and then start solving questions.
Then you can complete Cost of Capital, Leasing, Management of Working Capital and Capital structure.
Prepare the theory well with the practical part.
Practice the questions given in your VSI compiler and Practice Manual. Revise the subject on a daily basis and prepare charts on formulas of each and every chapter.
Topics covered in Economics for Finance
- Determination of National Income
- Public Finance
- The Money Market
- International Trade
The Subject is newly introduced in the CA Intermediate. But the subject is short, and topics are easily understandable, so you can score well in Economics for Finance.
Cover each and every topic. Start the topics depending on their length and at your convenience. Check the CA Intermediate exam dates for each paper and make your study plan accordingly. Furthermore, students can fill out the CA Inter exam form for the Nov 2023 attempt from August 2 to August 30, 2023. So, hurry up to avoid the last-minute rush.
You need experienced teachers and proper guidance for the best CA Intermediate results, and VSI is always welcoming every student. Each and every single concept is made clear by our experienced teachers. From time to time, motivation given by our teachers helps the students focus completely towards their goal and do not let them get distracted.
In this article, we have learned CA Intermediate Group 2 papers study plan and preparation strategy. Now you know where to start a particular subject, how to cover the entire CA Intermediate course of group 2 subjects and some easily scoring topics in each paper.