CMA Inter Paper 10 study guide
CMA Inter Paper 10 · Work through your exam, one topic at a time.
CMA Intermediate Paper 10: Corporate Accounting and Auditing is one of the papers at the Intermediate level of the Cost and Management Accountancy qualification offered by the Institute of Cost Accountants of India (ICMAI). It is aimed at candidates who have completed the CMA Foundation or hold an accepted exemption, and who are building the accounting and assurance base needed for the Final level and for roles in corporate finance, controllership and statutory audit support. The CMA Inter Paper 10 study guide has 11 sections and about 3,162 words.
01Introduction to Corporate Accounting
This domain tests the statutory and conceptual foundations of company financial reporting: the books a company must maintain, the statements it must present, and the meaning of “true and fair” under the Companies Act, 2013 and the applicable accounting standards. Section 128 requires books of account on double-entry basis, kept at the registered office, preserved for eight years.
336 words, about 2 min02Accounting for Issue, Redemption and Buy-Back of Shares
This domain tests share capital transactions: issue at par or premium, calls, forfeiture and reissue, redemption of preference shares, and buy-back. The exam emphasises legal limits and journal entries.
321 words, about 2 min03Accounting for Issue and Redemption of Debentures
This domain tests debenture financing: issue at par, discount or premium, interest, discount or premium amortisation, debenture redemption reserve, and redemption. Debentures are long-term debt, not share capital, so the accounting treatment differs from dividends.
299 words, about 1 min04Final Accounts of Companies
This domain tests preparation and interpretation of company final accounts under Schedule III: the statement of profit and loss, balance sheet, and adjustments for outstanding, prepaid, depreciation, inventory, provisions and tax. Schedule III Division I applies to companies following AS; Division II applies to companies following Ind AS.
259 words, about 1 min05Accounting for Amalgamation, Absorption and External Reconstruction
This domain tests business combinations under AS 14: amalgamation in the nature of merger versus purchase, purchase consideration, goodwill or capital reserve, and external reconstruction. Amalgamation combines two or more companies; absorption is one company taking over another; external reconstruction is a new company taking over an existing one.
284 words, about 1 min06Consolidated Financial Statements
This domain tests consolidation under AS 21 and Ind AS 110: control, elimination, minority interest, cost of control, pre- and post-acquisition profits, and intra-group adjustments. A subsidiary is an entity controlled by the parent, normally through more than 50% voting power or control of board composition.
254 words, about 1 min07Introduction to Auditing
This domain tests the nature and purpose of auditing: the independent examination of financial statements, the auditor’s opinion, reasonable assurance, professional scepticism, and the limits of an audit. An audit is an independent examination of financial information to express an opinion on whether it gives a true and fair view.
277 words, about 1 min08Audit Planning, Strategy and Execution (including audit evidence and documentation)
This domain tests how an audit is planned, risk-assessed, executed and documented under SAs 300, 315, 320, 330, 500 and 230. The audit strategy sets scope, timing, direction and resources; the audit plan sets the nature, timing and extent of procedures.
260 words, about 1 min09Audit of Companies and Auditing Standards
This domain tests company audit law and the authority of auditing standards: appointment, disqualification, powers and duties of auditors, rotation, CARO, and the framework of SAs, SQC, SAEs and SRSs. Section 139: the first auditor is appointed by the Board within 30 days of incorporation; if the Board fails, members appoint within 90 days at an extraordinary general meeting.
300 words, about 2 min10Audit Report and Certificates
This domain tests audit reporting under SAs 700, 701, 705, 706, 570 and 720: opinion types, basis for opinion, going concern, emphasis of matter, other matter, key audit matters, and the distinction between a report and a certificate. An unmodified opinion states that the financial statements give a true and fair view.
290 words, about 1 min11Recent Trends in Auditing: Internal, Management, Cost, Energy, Forensic and Information Systems Audit
This domain tests specialised audit forms: internal audit, management audit, cost audit, energy audit, forensic audit and information systems audit, and how they differ from a statutory financial statement audit. Internal audit is an independent, objective assurance and consulting activity that improves risk management and control; Section 138 applies to prescribed companies; ICAI Standards on Internal Audit apply.
282 words, about 1 min