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Fundamentals of Accounting  and Auditing

Fundamentals of Accounting  and Auditing

CS Foundation - Paper 4 : Fundamentals of Accounting  and Auditing

ICSI has introduced this paper Fundamentals of Accounting and Auditing at the CS Foundation level where you will learn about how to prepare accounts for different types of companies and organisations, as well how to verify the books of accounts and financial records of corporate entities. 

Part A : Fundamentals of Accounting
Part B: Fundamentals of Auditing
Meaning of Accounting
Fundamentals of Financial Accounting
Paper 1
Paper 2
Paper 3

More about Fundamentals of Accounting  and Auditing

What are the Fundamentals of Accounting and Auditing?
  •  Fundamentals of Accounting and Auditing deals with the Basics of preparation of accounts for Companies, Sole proprietor, partnership firms and Non-Profit Organisations, bank reconciliation statement.   
  • Auditing refers to the examination of Books of Accounts and financial records of Corporate entities considering the Auditing Standards provided by ICAI and the processes to be followed by an Auditor. Auditing is done by an external auditor  
Why has ICSI introduced this paper, Fundamentals of Accounting and Auditing, at the CS Foundation Level?
  • The knowledge of accounting is of utmost important for a CS. A Company Secretary is required to take to care of compliance of Financial Statements as per Law. He should also have sound knowledge on interpreting and analysing Financial Statements. This paper enables a student to prepare Accounts and analyse the same   
  • The scope of work of Company Secretaries has increased and a practicing Company Secretary can be appointed as Secretarial Auditor for certain class of Companies. As a secretarial auditor, a CS is expected to know basics of Statutory Audit as well. This paper gives insight to students to understand the audit process and how audits are performed  
What are the topics covered in Fundamentals of Accounting and Auditing?
  • Accounting concepts, principles and policies  
  • Accounting Process  
  • Bank Reconciliation Statement  
  • Depreciation Accounting  
  • Preparation of Final Accounts for Sole Proprietors  
  • Partnership Accounts  
  • Company Accounts  
  • Accounting for Non-Profit Organizations  
  • Computerized accounting environment  
  • Auditing concepts and audit reports  


What is the best approach to studying the Fundamentals of Accounting and Auditing?
  • Start early: Considering the volume of syllabus of this paper, it is highly recommended to start the preparation much earlier to exams (at least 14-16 months before)    
  • Practice: Accounting and auditing is a blend of theory and practical. Understanding theoretical concepts and implementing the same on practical problems will help in understanding concepts better.   
  • Solving Mock Papers: It is very useful to solve mock papers as it familiarise you with the question paper pattern and the approach to solve analytical questions  
  • Revise: Always remember, it is always the power of re-calling in the exam that helps you excel. You may study once or twice, but your ability to revise and re-call what you have studied is what helps you during exams. Train you brain to re-call concepts as soon as you see the name of the topic.   



See how CA Malaya Kumar Panda , CA Vikas Oswal and CA Adeline Rochelle D'sa teach this paper Fundamentals of Accounting and AuditingSign up to get a free trial!