CA Inter Auditing and Ethics MTP May 2026: Question Paper and Solutions

How to Prepare for CA Intermediate Auditing and Ethics

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Question directory and available solutions

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

1. M/s RGS & Co., Chartered Accountants, have been appointed as the statutory auditors of Nova Engineering Ltd., a company engaged in manufacturing…
2. During the audit of Saraswati University for the year ended 31 March 2025, the auditor examined various income streams and administrative expenses…
3. Ardent Precision Components Ltd. has been sanctioned a Cash Credit (CC) limit of 10 crore by a bank to finance its working capital requirements. As…
4. BCD Ltd. is engaged in manufacturing of electronic components. During the audit of financial statements for the year ended 31st March 2025, the…
5. CDE Ltd. is engaged in manufacturing and has a turnover of 500 crores. During the audit, for the year ending on 31st March 2025, the auditor, CA R…
6. A Ltd. is engaged in manufacturing operations and has significant Work-in-Progress (WIP) inventory at year end. During the audit, the auditor…
7. WXY Biotech Ltd. is engaged in manufacturing specialised pharmaceutical products. During the financial year 2024–25, the company: Introduced a new…
8. RKP & Co., Chartered Accountants, were appointed as the statutory auditors of Orion Engineering Ltd., a company engaged in manufacturing heavy…
9. XYZ Limited is engaged in manufacturing activities. As at 31st March 2025, the Trade Receivables balance amounted to 8 crores. The statutory auditor…
10. Buildwell Limited, a manufacturing company engaged in production of industrial components, has reported total purchases of 48 crores for the year…
11. You are the statutory auditor of ABC Bank Ltd., a scheduled commercial bank having 350 branches across India. During the audit for the year ended…
12. RST & Co., Chartered Accountants, have been the statutory auditors of Bright Vision Ltd., a company engaged in wholesale trading of electronic…
13. Verma & Kapoor, Chartered Accountants, were appointed as the statutory auditors of Mor Components Ltd. for the financial year 2024–25. The company…
14. Mindset Appliances Limited, a listed company engaged in manufacturing electrical equipment, closed its books of account for the year ended 31st…
15. GreenGrow Multi-State Co-operative Society Ltd. (GMSCSL) is engaged in procurement and export of agricultural produce and operates across 6 states…
16. KRT & Co., Chartered Accountants, have been appointed as the statutory auditors of First Heavy Engineering Ltd., a company engaged in the…
17. SRT & Co., Chartered Accountants, are the statutory auditors of Dee Infra Projects Ltd., a listed company engaged in large infrastructure contracts.…
18. Parmarth Ltd. is engaged in manufacturing and holds significant inventory. The management conducts physical verification of inventory at periodic…
19. While forming an opinion on the financial statements, the auditor is required to evaluate various aspects relating to the presentation and…
20. TSR & Associates, Chartered Accountants, are the statutory auditors of Gama Manufacturing Limited, a company engaged in manufacturing industrial…
21. ABC Ltd. is engaged in manufacturing consumer appliances. During the year ended 31st March 2025, the company has recognized the following: Provision…
22. OPQ Infrastructure Ltd. is engaged in the construction of large industrial projects. The company has significant estimates in its financial…
23. Meet Electronics Ltd., a manufacturing company, is planning to appoint statutory auditor for the financial year 2024–25. The Board has approached CA…
24. Auditor of Sunshine Ltd. is of the view that due to greater management intervention to specify accounting treatment, the risk of material…
25. Bee Ltd. is a listed manufacturing company. The statutory auditor, CA P, conducted the audit of the financial statements for the year ended 31st…
26. RS & Co., Chartered Accountants, were appointed as auditors of X Ltd., a telecom company regulated by the Telecom Regulatory Authority of India and…
27. During the audit of MNO Hospitality Ltd., a large chain of luxury hotels, for the financial year 2024-25, the statutory auditor examined revenue…
28. DEF InfraTech Ltd. is a capital-intensive infrastructure company engaged in construction and leasing of transport assets. The company has recently…
29. GHI Ltd. is engaged in investment and manufacturing activities. During audit, the auditor performed inspection procedures in the following areas:…
30. PQR Ltd. is a manufacturing entity. During the audit, the auditor evaluated internal controls relating to safeguarding of assets and noted the…
31. STU Ltd., a listed company, issued Sweat Equity Shares to certain senior employees during the financial year. While verifying compliance with legal…
32. DEF Ltd. is a profit-oriented company engaged in the FMCG sector. During the audit for the financial year ended 31st March 2025, the auditor…
33. OPQ Ltd. is a widely held company engaged in manufacturing activities. The management of the company is responsible for preparation of financial…
34. CA A is the statutory auditor of AB Ltd., a company engaged in manufacturing high-precision industrial components used in the automobile sector. The…
35. Zetta Manufacturing Ltd. is engaged in the production of textile machinery components. During the course of audit, the auditor observed fluctuations…
36. N Ltd., a manufacturing company, has availed a Cash Credit Facility of 1 crore from XY Bank Ltd. As per the latest stock statements submitted for…
37. QRS & Associates, a firm of Chartered Accountants, is handling multiple audit engagements across diverse industries. One of its clients, Nova…
38. Raghav Mehra & Co., Chartered Accountants, were appointed as the statutory auditors of Jeep Manufacturing Limited for the financial year 2024–25.…
39. Arvind & Associates, Chartered Accountants, were appointed as auditors of Stellar Appliances Ltd. for the financial year ended 31st March 2025.…
40. Nature Charitable Trust runs a multi-specialty hospital in Noida. The hospital earns revenue from patients, donations, subscriptions, government…
41. FGH & Co., Chartered Accountants, have been appointed as the statutory auditors of Alpha Ltd., a company engaged in manufacturing electrical…
42. RS & Co., Chartered Accountants, were appointed as statutory auditors of Zifi Infra Ltd., a listed company engaged in infrastructure development.…
43. "Before the commencement of audit, the joint auditors should discuss and develop a joint audit plan”. Discuss the points to be considered in…
44. Explain the objective of the auditor to express an appropriately modified opinion as per SA 705 – Modifications to the Opinion in the Independent…
45. CD Manufacturing Ltd., engaged in the production and trading of consumer goods, has significant inventories comprising finished goods and goods held…
46. YZ & Co., Chartered Accountants, were appointed as auditors of Shree Ltd. for the financial year 2024-25. The auditor proposed to sign the audit…
47. "Familiarity threats are a significant concern affecting the independence of auditors." Explain the meaning of familiarity threats and discuss the…
48. FRN Ltd. is a technology-driven company where most transactions such as sales, purchases, and inventory movements are processed through an automated…
49. CA B, an auditor, after the completion of busy audit season, was occupied in assembling of final audit files of one of his client. First of all, he…