CA Final Advanced Auditing, Assurance and Professional Ethics MTP September 2025: Question Paper and Solutions

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Question directory and available solutions

52 indexed questions. Open a question to read its full statement and available answer.

1. Worthy Bank Ltd., a mid-sized financial institution, prides itself on offering secure digital banking services to its customers. Recently, the bank…
2. CA. Rishi, statutory auditor of KMC Ltd., identified that there was a misstatement last year and the same is still not corrected. Although…
3. Rajul and Associates, Chartered Accountants, were appointed as the stock auditors by the Bank's audit committee for ten branches for year 2024-25.…
4. Innovate Robotics Pvt. Ltd. (IRPL) engaged in the business of manufacturing advanced robotic machinery and developing proprietary automation…
5. SCL is a prominent, listed Non-Banking Financial Company (NBFC) (non-deposit taking NBFCs with an asset size of 1,000 crore and above) primarily…
6. Verma & Associates, Chartered Accountants, a firm majorly engaged in statutory audits and tax audits, is in the process of exploring the areas…
7. CA. Arvind, statutory auditor of Divinity Technologies Pvt. Ltd., noticed that Mr. Kamlesh was engaged by Management for investigation of suspected…
8. HAM Ltd. is engaged in the business of manufacturing electronic components, including sensors, microchips, and lithium-ion battery cells. The…
9. CA. Zora has recently accepted engagement of the statutory audit of Segment Ltd. for the financial year 2024–25. While reviewing the trial balance…
10. RST Ltd. is a company listed in India. The Company has appointed M/s R & Co. as auditors. CA. R has recently joined the firm and has been…
11. Gupta, Sharma and Khandelwal are partners in a firm engaged in trading activities. They share profits and losses in the ratio of 2:2:1 respectively.…
12. Mr. Rohan, a Chartered Accountant in full-time practice, is approached by a client who is commencing a new business. The client requests Mr. Rohan's…
13. Mr. Ramesh, a practicing Chartered Accountant and partner at RR & Associates, recently ordered a new set of visiting cards and letterheads for…
14. Vishnu & Co. is in process to issue a prospectus containing projected financial statements to provide information about future expectations of…
15. KLM Industries Ltd., a mid-sized company engaged in consumer electronics manufacturing, has recently undergone a major digital transformation by…
16. CA. Sudeep, a newly qualified Chartered Accountant holding Certificate of Practice, approached CA. Suraj, the statutory auditor of his father's…
17. XYZ Ltd., a listed entity, is preparing its Annual Report for the financial year 2024-25. The company has operations in many countries and has…
18. All in One Ltd., a large departmental store, appointed CA. Kabir as the statutory auditor. After accepting the engagement and performing the audit…
19. CA. Garvit has been appointed as the auditor of Liv Bank, a nationalised bank. During the audit, he observes that the bank has recently expanded its…
20. You are the auditor of SAFE Ltd., which is in the business of supplying food products to various airline companies operating in aircrafts in…
21. CA. Rudra is the Chief Financial Officer of DGT General Insurance Limited. Being in the insurance business, the company gets majority of its clients…
22. CA. Jayesh has recently been appointed Chief Internal auditor of a listed company. The internal audit charter inter alia includes long term view of…
23. You have been appointed as an auditor of Megh & Sons for FY 2024-25, as entity other than a company incorporated under the Companies Act, 2013,…
24. Compute the overall Audit Risk if looking at the nature of business there are chances that 30% bills of services provided would be defalcated,…
25. M/s. CDR & Associates is one of the three firms shortlisted by JDB Cooperative Bank for assignment of Statutory Audit for the F.Y 2024-25. The…
26. Mr. Suraj reported, under Clause 3(A)(III) of Master Direction - Non-Banking Financial Companies Auditor's Report (Reserve Bank) Directions, 2016,…
27. Navya & Associates are the statutory auditors of MNO Ltd. for the financial year 2024-25. While conducting the audit, CA Nemi, the engagement…
28. DPT bank had an NPA account of M/s Sahil and Sons showing recoverable amount of 40 lakh in the books. It sold the NPA for 45 lakh. Please select as…
29. Supriya is a practicing Chartered Accountant and a partner in SPR Associates, a CA firm engaged in various assignments across audit, advisory,…
30. While auditing consolidated financial statements of Kissan Industries Limited for the year 2024-25, a manufacturing company whose financial…
31. ADM & Associates, a medium-sized audit firm, has recently been appointed as the statutory auditor of Muonic Ltd., a listed pharmaceutical company…
32. CA Pawan has been appointed as the statutory auditor of Vij Pvt. Ltd. for the financial year 2024–25. During the course of the audit, he obtained…
33. CA Prashant is appointed as statutory auditor of Sober Pvt. Ltd. under the Companies Act 2013 for the first time. The company is preparing its…
34. Besides above, current ratio, debt-equity ratio, trade payables turnover ratio and net profit ratio disclosed in notes to accounts have slipped…
35. Mohan Ltd. having a net worth of 1,750 crore, is mandatorily required to comply with Ind AS. The company had various complex derivative contracts –…
36. CA Chirag is the statutory auditor of Electric Corporation Limited, a Government Company for the year ended on 31st March 2025. The turnover of the…
37. While planning the audit of a company that heavily relies on automated processes, the auditor notices that several key financial reports used for…
38. TP and Associates were statutory auditors of Deepa Ltd. The audit for the financial years 2023-24 and 2024-25 is still pending due to a dispute…
39. The Comptroller & Auditor General (C&AG) appointed Rajni & Associates, a chartered accountant firm, to conduct Performance audit of LBC Ltd., a…
40. CA Vardhman is the statutory auditor of a listed company and is also required to carry out a quarterly review of financial statements of company in…
41. Mr. Dharam has been appointed as the statutory auditor of Great Ltd., a listed company. As per the terms of acceptance of audit, the whole audit fee…
42. CA Purva is working as Credit manager in branch of ADC Bank Limited. A company has approached the branch for a request to sanction credit facilities…
43. Would your answer be different if the same activity was performed by a person not qualified as a Chartered Accountant? Can a non-CA perform such…
44. Name any three other areas where identified activity can be undertaken.
45. CA Subhadra, an engagement partner in SRT & Associates, is conducting the statutory audit of MBI Ltd., an unlisted manufacturing company with 96…
46. Clim Limited is enjoying cash credit facility sanctioned from Ludhiana branch of DDL Bank for 300 crore. However, for practical considerations,…
47. Gamma Ltd is engaged in the Construction business since year 2014. The auditor understands that a thorough construction estimate is vital to the…
48. Echo Limited is amongst the top 1000 listed entities. With the introduction of new reporting requirements by SEBI on ESG parameters called the…
49. CA Shreyansh is carrying out an audit of restated financial statements of MBC Limited for past 3 financial years i.e. 2024-25, 2023-24, and 2022-23…
50. CA Deepali is a practicing Chartered Accountant having office in Surat. She is owner of creative.net. In order to generate additional revenue CA…
51. ROPE Ltd. is a manufacturing and trading Company of leather goods since last 12 years. You are the internal auditor of the company for the year…
52. CA Ajeet is appointed as a statutory auditor of Shravasti Ltd. Shravasti Ltd. is required to appoint an internal auditor as per statutory provisions…