Company Accounts is the set of financial records showing the details of a company’s profit and losses which are to be produced at the end of the year. Audit is the inspection and verification of Company Accounts.
As a CMA, you need to obtain an in-depth knowledge of how to prepare financial statements including procedures, principles and the professional standards. As a CMA, you will need to perform cost audits of companies. But you also need to have some basic knowledge of other types of audit to get a general idea of the procedure. As such, you are introduced to the basic concepts of auditing.
The topics covered in Company Accounts and Audit at the CMA Intermediate level
You will learn about Accounts of Joint Stock Companies which include the Accounting of Shares and Debentures, Presentation of Financial Statements, Cash Flow Statement and the Accounts of Banking, Electricity and Insurance Companies
You will get an introduction to Accounting Standards (AS – 11, 12, 15, 16, 17, 18 and 19)
Under Auditing, you will learn about basic Auditing Concepts, and the provision related to Auditing under the Companies Act
The best approach to study Company Accounts and Audit
This is a practical paper and so, you must solve a lot of problems
Take short notes and mark the concepts you find difficult so that you come back to them when revising
Keep yourself updated with the latest amendments regarding Accounting Standards
Study consistently and do not wait for the last minute
Credit system allows you to plan your learning smartly and with flexibility. Watch the video to find out more about how the credit system works, and how you can leverage this for your success.