ICAI EXAM WITH SUGGESTED ANSWER

Paper. 1 Financial Reporting (FR)

The FR Exam was simple. All questions were straightforward from the ICAI study material and revision test papers for November 2021 and May 2022. However, it was very lengthy and difficult to attempt 100% of the questions within the given time of three hours. There was a very lengthy calculation in each question, which was very time-consuming. In order to complete the entire paper, it was required to maintain writing speed. Out of 100 marks, only 6 marks were allocated for theory questions, and the remaining 94 marks were allocated to practical questions. Therefore, students should focus only on practical questions while preparing for FR.

According to ICAI exam trends from previous years, more than 60 marks are coming from questions in IND AS-103 "Business Combination," IND AS-110 "Consolidation of Financial Statements," IND AS-109 "Financial Instruments," IND AS-116 "Leases," and IND AS-102 "Share-Based Payment."

In this attempt FR Question paper, 54 marks questions were asked from only the followings three topics IND AS-103 “Business combination”, IND AS – 115 “Revenue from customers” & IND AS-109 “Financial Instrument”. In this attempt question, no question was asked from IND AS-110 & IND AS-116.

Question Paper Download Link: -https://resource.cdn.icai.org/70403bos170522-final-p1.pdf

Paper. 2 Strategic Financial Management (SFM)

The strategic financial management paper was an average paper all questions asked in the question paper was from ICAI study material with minor additional adjustment all question was manageable.

According to the ICAIs past year trend, SFM papers were generally divided into two sections. and practical and theory portions are generally asked for 20 marks and practical questions are for 80 marks. It was also observed from past years papers that Out of 20 marks theory questions, almost 15 marks questions come from Chapter-1 "financial policy and corporate strategies", Chapter-2 "risk management", Chapter-6 "securitization" and Chapter-14 "startup finance" of the ICAI study material. In this attempt, 20 marks theory questions come from the above chapters.

However, there was some new theory question that was not asked in previous attempts. and from the following four chapters more than 50 marks questions were asked in exams, chapter - 5 ‘portfolio management” was asked for 16 marks, chapter - 7 “mutual fund” was also asked for 16 marks and, chapter - 10 “International Financial Management” was asked for 12 Marks, Chapter - 11 “interest rate risk management” was asked for 12 marks.

Question Paper Download Link: - https://resource.cdn.icai.org/70424bos56357-finalp2.pdf

Paper. 3 Advance auditing and professional ethics

The audit paper was very difficult and lengthy. questions were almost all new framed questions, and the MCQ part was average and manageable. It requires a deep understanding of each topic to attempt entire audit question papers.

As per the past years trend of ICAI exams, almost 50 to 55% of the marks are asked from the 3 topics.

Standards on Auditing, Professional Ethics, and Company Audit and CARO. In this attempt, 19 mark questions are asked from Standard on Auditing, 12 mark questions are asked from Professional Ethics, and 10 mark questions are asked from Company Audit and CARO. In aggregate, 41 mark questions are asked from only three topics.

Question Paper Download Link: -https://resource.cdn.icai.org/70441bos56379.pdf

Paper.4 Corporate& Economics law

Law Paper was average and not very tough, but it was a lengthy paper because each question has 3-4 sub-questions for 4 to 5 marks. Only a few questions in the exam were repeated from past years questions, and all other questions were newly formed by ICAI. It required sound conception and knowledge of provisions of law to solve this paper.

According to the ICAI past paper trend, nearly 55% of the papers asked were about Directors, Insolvency and Bankruptcy Code 2016, Prevention and Money Laundering Act 2002, and Foreign Exchange Management Act 1999.

In this attempt, 60 mark questions come from the above topics. There were 26 marks questions from the directors topic, 9 marks questions came from IBC 2016-chapter, 9 marks questions came from PMLA 2002- and 6-marks questions came from the FEMA Act.

In the upcoming new CA final syllabus, it is proposed to remove paper 4 from group 1.

Question Paper Download Link: -https://resource.cdn.icai.org/70462bos230522-final-p4.pdf

Paper 5 strategic cost management and performance evaluation

paper were average but lengthy. It was difficult to manage all the questions at a given time. The SCMPE syllabus comprises theory as well as a practical concept. Questions are asked in the exam in the form of case studies.

As per the past years trend of ICAI exams, almost 70 to 75% of the mark questions were asked from Chapter-3 Lean system & innovation, Chapter-4 Cost management technique, Chapter-5 Decision Making, Chapter-7 Performance measurement, and Chapter-8 Transfer Pricing, etc.

In this attempt, almost 70% of the questions were from theory topics and the remaining 30% of the questions were practical questions. Since ICAI has asked mostly theory questions, it was very important to remember theory topics for attempting SCMPE questions.

In the upcoming new CA final syllabus, it is proposed to remove paper 5 from group 2.

Question Paper Download Link: -https://resource.cdn.icai.org/70485bos56430-final-p5.pdf

Paper 6D Economics law

The Economic Law paper was difficult and very lengthy and no similar case study was asked from the case study material. Case studies were conceptual. You cant solve an exam case study by just referring to the study material in the exam hall. You should have a deep conceptual understanding of economic law topics.

Many students have a perception that since paper 6 is an open book exam, it does not require much effort to prepare for an open book exam, which is the wrong approach. Students should equally consider and prepare for this exam as with other exams. It will be scoreable if you read and understand the concept of the open book exam thoroughly.

Students must maintain a consistent writing speed while solving case studies in the open book exam; only then will they be able to attempt all of the questions.

Question Paper Download Link: - https://resource.cdn.icai.org/70516bos56464-p6d.pdf

Paper. 7 Direct Taxation and International tax

The tax paper was average, but all the questions were very lengthy. It was challenging to attempt the entire paper within 3 hours. Many questions were designed newly and not based on similar patterns of past years questions, and MCQs were also very time-consuming and difficult.

ICAI has divided the direct tax syllabus into two parts: the direct tax part and the international tax part, and 30 marks are allocated to international tax, and 70 marks are allocated to direct tax.

According to ICAI exam trends from previous years, more than 60% of questions are asked on topics such as DTAA, transfer pricing, non-resident taxation, charitable trust, TDS & TCS, and PGBP.

In this attempt, almost 55% of the marked questions were asked from the above chapters.

Question Paper Download Link: - https://resource.cdn.icai.org/70573bos-fp7-may22.pdf

Paper.8 Indirect Taxations

The indirect tax paper was average, and the MCQ was technical. All the questions were newly designed. ICAI has divided the IDT syllabus into two parts: the GST part and the Customs Law part and allotted a weightage of 70 marks for the GST part and a weightage of 30 marks for custom law.

According to ICAI past year exam trends, custom law topics such as valuations under custom, duty drawback, foreign trade policy, baggage rule, provisional assessment received more than 25 marks and input tax credit, the value of supply, exemption, composition levy, and reversed charge mechanism, refund, and place of supply received more than 50 marks.

In this attempt, almost 65% of the questions were from the above topics.

Question Paper Download Link: -https://resource.cdn.icai.org/70533bos300522-final-p8.pdf