CA Inter Auditing and Ethics MTP September 2025: Question Paper and Solutions

How to Prepare for CA Intermediate Auditing and Ethics

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Question directory and available solutions

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

1. CA Trustworthy has accepted audit of financial statements of a company viz. Precision Industries Private Limited for year 2024-25. The company's…
2. CA Mahaveer, a partner at ANJ & Co., is conducting the statutory audit of a branch of Fair Bank for the year 2024-25. During the course of the…
3. Arya Ltd. is a company engaged in the manufacture of stainless-steel household items such as hot pots, pressure cookers, bottles, and cutlery sets.…
4. CA Neha is appointed as auditor of a newly incorporated textile company. Before starting the audit, she checks whether the firm meets ethical…
5. CA Meenal is approached by River Pvt. Ltd. to conduct the audit for F.Y. 2024-25. During the pre-engagement discussions, the management informs her…
6. CA Rahul, the statutory auditor of Vishal Enterprises, is conducting the audit for the financial year 2024–25. As part of his audit procedures, he…
7. CA Aditi is in the process of evaluating the internal controls of a company by focussing on controls operating for creditors from whom various goods…
8. CA Krish is planning the audit of financial statements of Black and White Limited for financial year 2024-25 with the objective of conducting it in…
9. While scrutinising the accounts of XY Ltd., CA Q, the auditor of XY Ltd., observed that the company had a significant amount of trade receivables…
10. During the audit of Venus Ltd., CA Rajveer found a considerable increase in sales as compared to the previous year. He suspected that a few…
11. CA Govind is conducting stock audit of a borrower availing cash credit facility of 120lacs from branch of a bank. The cash credit facility is…
12. Planning is not a discrete phase of an audit, but rather a continual and iterative process that often begins shortly after the completion of the…
13. Lifeline Hospital, a charitable healthcare institution, provides medical services at subsidised rates. During the audit for the financial year…
14. During course of audit of a company, CA NP has noticed that company's financial position is precarious. The management is unable to pay creditors in…
15. RJ Limited has expanded its operations from a single Indian state to multiple countries worldwide. Due to this significant growth, the management…
16. The auditor is not required to report on the matters specified in sub-section (1) of Section 143 of the Companies Act, 2013 unless he has any…
17. CA Mira, before accepting audit of an educational society, wants to ensure that management of society acknowledges and understands its…
18. CA Keshav has been re-appointed as the auditor of PKT Ltd. In order to re-confirm certain matters, he has requested the management to provide…
19. During the audit of Quick Productions Private Limited, CA Naitik notices that inventories of raw materials & consumables and work-in- progress…
20. Serving Fingers Foundation, a registered NGO based in Delhi, launched a nationwide donation drive during the year 2024–25 to support victims of a…
21. Dream Build Ltd. is an established player in the Real estate sector and has developed strong internal controls across most areas. You are appointed…
22. You are auditing the financial statements of JEN Ltd., a manufacturing company. During a meeting, Mr. Jai CEO questions the auditor's ability to…
23. As part of the risk assessment procedure, an auditor is required to determine whether any of the identified risks are, in their professional…
24. You have been appointed as the statutory auditor of AMRO Ltd., a listed entity. During the audit for the year ended 31st March 2025, you noticed…
25. Patrika & Co., Chartered Accountants, has been appointed as the statutory auditor of AVR Retails Pvt. Ltd., a company engaged in business of…
26. CA Adhya, a partner at TAK & Associates, Chartered Accountants, is conducting the statutory audit of NextGen Appliances Pvt. Ltd., a company engaged…
27. Maya & Associates, a Chartered Accountant firm is appointed as an auditor of ABC Pvt. Ltd. CA Maya, partner of the firm, has recently bought stock…
28. During the audit of PQR Ltd., the audit team decides to develop a graphical presentation of various components of the company's internal control…
29. KRAT & Co. has been appointed as the statutory auditor of Astral Resorts Ltd. This is the first time the firm is having audit engagement in the…
30. CA Raj is in the completion phase of the audit of Happy Private Limited, a manufacturing company, for the financial year 2024-25. On 26th May 2025,…
31. CA Sakshi, the statutory auditor of ZMC Ltd., a medium-sized trading company, was reviewing the company's internal control system as part of her…
32. CA Veer is conducting the statutory audit of Lamex Industries Ltd., a company engaged in manufacturing and export of textile goods. The audit firm…
33. M/s Dheeraj & Associates, Chartered Accountants, have been appointed as statutory auditors of SPICE Limited for the year 2024-25. CA Dheeraj relied…
34. Identify and explain the assertions that the auditor will check by performing the following audit procedures: (i) Any inventory held by the entity…
35. Advances generally constitute the major part of the assets of the bank. There are large number of borrowers to whom variety of advances are granted.…
36. ABS & Co., Chartered Accountants, have been appointed as statutory auditors of Aerotech Systems Pvt. Ltd., a company that makes advanced equipment…
37. The auditor should maintain alertness for related party information while reviewing records and documents. He may inspect the records or documents…
38. CA Ritu is conducting the statutory audit of KLM Ltd. During the audit, she encountered significant difficulties in obtaining certain information…
39. Fair Ltd. has been sanctioned a Cash Credit facility of 1.50 crores by Worthy Bank. Based on the monthly stock statements submitted for the last…
40. Delightful Limited is required to present comparative financial statements for the year 2023-24 and 2024-25. CA Mohit has been appointed as the…
41. CA Sulsa is conducting the statutory audit of SATI Ltd. While reviewing the purchase records, she noticed a large purchase transaction supported by…
42. CA Mahavir is conducting a training session for newly joined audit trainees. He explains the concept of audit risk and its three components. He…
43. Shiksha Public School maintains a Fee Register and issues receipts to students for fee collection. During the audit, the auditor observed that some…
44. RST Ltd., a company engaged in manufacturing eco-friendly packaging solutions, is planning to enter into a new geographical market and launch a new…
45. CA Saurabh is conducting the statutory audit of UVW Ltd. for the year 2024-25. While verifying the purchases made by the company, he decided to…
46. Money Ltd. is a listed company engaged in the business of manufacturing. During the financial year 2024–25, the company has given loans to its…
47. TED Ltd. has taken an office building on rent for its operations. The auditor wants to verify the rent expense recorded in the books. Describe the…
48. CA Sandeep has identified certain misstatements during course of audit of an entity. Except two misstatements, all were corrected by management. He…