How to Prepare for CA Intermediate Group 2 Papers May 2022
Do you have any issues about how to begin preparing for Group 2? After clearing the Group 1 tests, students taking the IPCC can begin their practical training. CA Intermediate students, on the other hand, can begin their three-year practical training after passing either or both of the groups.
In this post, we’ll teach you how to plan your CA intermediate group 2 preparation strategy. The article will show us how to get started on a topic and where we should focus our efforts. Each of the four subjects in the CA Intermediate Syllabus is divided into two groups.
According to the Intermediate qualifying standards, to pass this exam, you must score 40% on each topic and 50 % on the total of all subjects. You have the option of appearing in one or both of 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 the 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 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 Buy-Back.
Companies Accounts on an average carry 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 insurance companies are expected, and they will be worth 8-10 Marks. The importance of branch accounting cannot be underestimated.
The partnership accounts should be covered last because they are lengthy, time-consuming, and difficult to produce. Each attempt, however, has roughly 16 mark questions. So, instead of skipping it, go over the easier parts first
All students should look over the previous year’s CA Inter question papers to get a better understanding of the test format and types of questions asked in the Advanced Accounting question papers.
In the CA Intermediate Auditing and Assurance program, this is the most eagerly anticipated topic. The subject is difficult, and there isn’t much room for error. However, you must read each and every topic because auditing is a vital responsibility of a Chartered Accountant, and after passing the CA Intermediate, everyone must perform an audit in their office during practical training.
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 of Items of Financial Statements
The Company Audit
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 Myth. The language you are using in your paper is first imprisoned on 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, a true and fair view should not be replaced by a 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 an average of 30 marks in your paper.
Other important topics are as follows –
Special Audits related to Club, NGOs, Partnership firms, Educational institutions, Hotels, Cinema Halls, hospitals, sole proprietors, 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 Audit techniques, Audit Programmer, 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 questions then write the provision regarding that and end your answer with the proper conclusion.
Mainly, keep practicing your questions so that when it comes time for the final test, you can finish your questions ahead of schedule.
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 scoring and easy while 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 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 arrives in the exam paper from the ICAI 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 daily.
Many of the students have the 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 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 help from your teachers.
Make a summary of the chapters. Chart format is preferable because the revision of the entire course is not possible from the book at the exam time. So, be ready with the summary notes.
Command on 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 as compared to IT.
Read the practice manual whichever you have 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 and 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, Cost of Capital, Capital Structure, and 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 they will remain in your mind for a longer period.
You can start with the Leverages or Capital Structure, the most important topic. You will definitely find a question either from the Leverages or the Capital Structure.
Then take a short chapter to build confidence i.e. Dividend Decisions, a formulae-based chapter but if your concepts are clear, you understood the formulas rather than learning them then it is the simplest and short chapter.
Then you can go with Capital Budgeting and thoroughly prepare the sums on the 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 Ratio, a formula-based chapter so, read and understand the formulas first and then start solving questions.
Then you can complete Cost of Capital, Management of Working Capital, and Risk Analysis in Capital Budgeting.
Prepare the theory well with the practical part.
Practice the questions that you have Revise the subject on a daily basis and prepare a chart on formulas for each and every chapter.
Topics covered in Economics for Finance are as follows-
Determination of National Income
The Money Market