How to Prepare for CA Intermediate May 2021 Group 2 Papers
Are you worried how to commence your preparation for the Group 2. Students appearing in the IPCC can commence their practical training only after clearing the Group 1 examinations. However, students registering for the CA Intermediate course can commence their three years of practical training after passing out either both or any one group.
In the last article, we have shared the subject wise study plan & preparation strategy for group 1 papers and now In this article, we are going to help you plan your ca intermediate group 2 preparation strategy. We are going to learn from the article about where to start a subject and where you need to focus more. Entire CA Intermediate Syllabus is divided among two groups and each group consists of four subjects.
According to the Intermediate eligibility criteria ,in order to crack this exam one has to obtain 40% marks in each subject and 50% marks in aggregate of all the subjects. You can appear in either one group or both the groups.
Subjects covered by the second group are as follows –
- 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)
How to Study Advanced Accounting
Topics covered by Advance Accounting are as follows –
- 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 easy compared to other topics and also very much scoring. At the Intermediate level, they will cover around 20 marks paper. From the above AS – 7, 9, 20, 26 are easiest.
There is always a question 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 it covers Group – 1. And it is probable that if there is a question in Group 1 “Accounting” paper from Amalgamation carrying 16 marks then there will be high chances of Internal Reconstruction in Group – 2 Advance Accounting paper.
There must be at least one question from the Buy Back, Underwriting or ESOP carrying 8 marks or two questions of 4 marks each and are generally easy to prepare. The higher probability is of Bu Back.
Companies Accounts on an average carries 30-35 marks and practice can make you perfect in such. Issue and Redemption of Debentures are important and 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 question in each attempt. So, don’t skip it but cover the easier part first.
Practice as much questions as you can from the VSI compiler and Practice Manual.
How to Study Auditing and Assurance
The most awaited subject in the CA Intermediate Auditing and Assurance. The subject is not that easy and also not much scoring. But you have to read each and every topics 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.
The topics covered in this subject are as follows –
- 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 of Banks
- Audit of Different type of Entities.
There is so much confusion among some students that in 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 on the examiner so you must have a command over the language either English or Hindi. You can use own language but there are some Keywords in your answer which should not be replaced anyhow. For example, true and fair view should not be replaced by 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 Standards. Some important SA’s are SA 230, SA 330, SA 450, SA 505, SA 520, SA 610, SA 710.
Company Audit should be on the top priority. This chapter is damn easy to read and retain and also very much scoring. It covers on an 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 answer in Audit covers a good marks. Always write your answer in points or short para. Underline the important or key words.
Start your answer with the proper analysis of question then write the provision regarding that and end your answer with the proper conclusion.
Practice the questions from your VSI compiler or Practice Manual or question bank. Many questions are directly seen from the Practice Manual so it is better to cover the Practice Manual thoroughly.
Study Plan for Enterprise Information System and Strategic Management
This subject is equally divided into two sections one is Information Technology (IT) and the other one is Strategic Management (SM). SM is considered as scoring and easy while the IT is difficult to learn and retain.
Topics covered in IT are as follows –
- 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 most scoring and easiest topic is Flowchart and Decision Table. A question covering 8 marks is generally seen in the paper. Most of the times the question arrives in the exam paper from the ICAI material either the study material or the practice manual.
The problems generally faced by the students is lack of revision which makes them blank in the exam even after studying alot, so revise it daily.
Many of the students have 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 retain in your mind longer.
Don’t stick on 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 help of your teachers.
Make 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.
Command on the language matters a lot specially in IT and SM. 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 as compare to IT.
Thoroughly complete the VSI compiler and read the practice manual as many times as you can.
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 the part of the first group has now become a part of the second group with Economics for Finance.
Topics covered in Financial Management are as follows –
- 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 decision, 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 it will retain in your mind for a longer period.
You can start from 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, you understood the formulas rather than learning it then it is the most simplest and short 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 is quite more important so prepare them very well.
Again pick a short chapter Ratios, a formulae based chapters 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 chart on formulas of each and every chapter.
Topics covered in Economics for Finance are as follows-
- 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 as per your convenience.
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. Time to time motivation given by our teachers helps the students focusing completely towards their goal and do not let them get distracted.
In this article, we have learned CA Intermediate group 1st study plan and preparation strategy Now you know from where to start a particular subject, how to cover the entire course and some easily scoring important topics in each subject for your upcoming Intermediate examinations.