CA Intermediate aspirants often say:

“Audit is boring and full of theory.” 

“FM - SM is lengthy; I ran out of time in the exam.”

These are the common struggles faced by the student during the preparation of the CA but here the truth – Audit FM and SM are two of the easiest papers to score exemptions(60+ marks) if you prepare smartly. Student don’t need to study 12 hours a day, but they need to study with a structured plan, exam oriented focus, and consistency. 

Why Focus On Exemption?

Exemptions are a safety net in CA exams. An exemption is granted when a student scores 60 or above in a subject. Even if the candidates fail to clear the entire group, the marks in that subject are carried forward.

For Example:

If you score 62 in Audit, but fail to clear Group II due to weaker marks in other papers, your Audit paper remains exempt.

This gives you a great advantage in the next attempt, as you only need to focus on the remaining subjects.

Benefits of Exemption:

• Reduces Exam Pressure
• Increases Group Passing Chances 
• Boost Confidence 

Challenges Faced by Students in Audit, FM and SM

Audit – The tricky Theoretical Paper

• Voluminous Syllabus: Standards on Auditing (SAs), Company audit, professional ethics, and special audits make the subject lengthy.
• Presentation Oriented: Even if you know concepts, marks depend on how you structured the answer with keywords, SAs numbers, and relevant case applications.
• Memory Retention: Students often struggle to recall exact keywords and clauses.
• Perception of Low Scoring: Many aspirants treat Audit as unpredictable, but with the right strategy, it can fetch high marks.

FM and SM Mix of Practical and Theory 

• FM (Financial Management) is numerical but conceptual clarity is essential for accuracy. 
• SM (Strategic Management) is theory heavy but much easier than audit. 

Students often underestimate SM, leading to silly mistakes.

Balance between speed in FM and retention in SM is key. 

Either Focus on FM SM Both Parts or One Part

Strategic Preparation to Score Exemption in Audit & FM-SM Papers

Step 1: Understand the Exam Pattern 

Knowing the exam pattern helps students study smart, not just hard. It shows which topics carry more marks, guide time management during exams, and ensures focused revision. 

It also reduces exam fear by familiarizing you with the type of questions – MCQs, case studies, or theory – and helps allocate efforts where they truly count. Simply put, understanding the pattern in the first step toward scoring exemption. 

Step 2: Identify High Weightage Topics 

One of the most strategic ways to aim for exemption is by focusing on those topics that carry higher marks. 

Strategic Tip: Mark a priority list of these high weightage topics and ensure mastery before moving to lower – lower weightage topics.

CA Inter Auditing and Ethics ABC Analysis and Weightage

Step 3: Collect the Right Study Material and Resources 

Having the right study resources is crucial for strategic preparation. For exemption focused strategic preparation.

• ICAI Study Material & RTPs (Revision Test Papers): Primary source includes updated amendments and past trends.

• Practice manuals and Supplementary Books 

For Audit: Books explaining case studies with stepwise solutions 

Best Books For Auditing and Ethics in CA Inter

For FM – SM: Books with MCQs, numerical problems, and practical case examples.

Bhagya Achievers Mentoring and Free downloadable Notes PDF

• Structured free notes simplify complex topics.
• Mock tests, PDFs, and Practice questions help in building speed and accuracy. 
• Mentoring sessions clarify doubts, provide exam strategies, and simulate real exam conditions.

Strategic Tip: Avoid juggling too many books: focus on quality over quantity

Get Free Notes to Excel CA Inter Audit Paper

      Step 4: Create a Strategic Study Plan 

Exemption is achieved when concepts are crystal clear and answers are precise. A well planned schedule should balance:

• Conceptual Learning: Understanding standards, formulas, and strategic frameworks
• Practice: Case studies, past exams, and mock tests.
• Revision: Repeated cycles focusing on memory retention.

Suggested Study plan For Preparation:

• Morning: Concept learning (1-2 hours of audit or FM – SM theory)
• Afternoon: Numerical and case practice (2-3 hours)
• Evening: Revision + solving past questions (1-2 hours)
• Weekly: Take mock tests and analyse weak areas 

Strategic Tip: Allocate more time to weak topics but don’t ignore high weightage areas you are already comfortable with.

Double Tab to get Strategic Study Plan

Step 5: Practice Past Questions Strategically 

Past papers are the key to exemption preparation. Here’s how to use them effectively:

• Identify Repeated Concepts: ICAI often repeats the questions or slightly modifies from previous year exams.
• Analyze Mistakes: Maintain a mistake log and revise regularly those topics where mistakes occur.

Strategic Tip: Bhagya Achievers provide mock tests and solve past papers, helping students to understand exam style questions and marking schemes like real exams.

Click Here to Get FM – SM Past Year Question Papers

Click Here to Get Audit Past Year Question Papers

Step 6: Focus on Exam Day Strategy:

Even with perfect preparation, a poor exam strategy can spoil the chance of exemption in finals. Key points 

• Time management: Don’t spend too much time on one question. Allocate time on the basis of marks distribution to the question.
• Answer Presentation is everything: Write answers in points with proper headings and highlight keywords to score more.
• Avoid Guesswork in Audit: Unlike SM and FM numerical questions, audits require justified answers.

Strategic Tip: Practice writing multiple times full length papers under time limits before final exam 

Conclusion:

Exemption in Audit and SM – FM is not achieved overnight – it’s earned through dedicated efforts, strategic study plans, and consistent practice. If you master high weightage areas, practice case studies regularly, and revise smartly, you can confidently aim for exemption. 

Remember, every hour of focused study takes one step closer to success. 

FAQs:

Q1: What are the minimum marks required to get an exemption in Audit or FM – SM?

Ans: To get an exemption in Audit or FM – SM, students need 60 or above 60 marks in that particular subject. Once you get an exemption it remains valid for next three attempts.

Q2: How can I manage my time during the preparation of Audit, FM and SM?

• Dedicating mornings to Audit as theory required a fresh mind.

• Practice numerical portion (FM) in the afternoon.

• Revise SM questions and short notes in the evening time.

Consistency plays a significant role to secure exemption in Audit, Financial Management and Strategic Management. 

Q3: Can I completely depend on the ICAI study material or should I use extra resources?

Ans: For the preparation of CA exam ICAI study material is a more important source. However for deeper preparation and practice, you may refer to other books or study material. But don’t overburden yourself as quality revision matters more than number of resources.

Q4: How can I avoid silly mistakes in Financial Management Paper?

• Always try to write the formula first, and then substitute values.

• Double check calculations and units 

• Manage your time wisely so that you review the answers at once. 

Q5: Should I prefer a long answer in Audit to secure exemption?

Ans: Not at all, most of the examiners prefer answers to the point with proper headings, keywords and highlights. A concise and structured answer helps to score more marks rather than lengthy answers.

Also Check:

• CA Inter Auditing and Ethics ABC Analysis and Weightage
• How to Pass CA Final Audit with Flying Colors
• How to Prepare for CA Final Advanced Financial Management (AFM)
• CMA Inter Financial Management and Business Data Analytics (FMBDA) June 2025 Exam Analysis
• CA Inter Financial Management and Strategic Management ABC Analysis and Weightage
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• CA Inter Financial Management and Strategic Management ABC Analysis and Weightage