CA Inter Auditing and Ethics MTP September 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. Mega Industries Ltd. is a listed company engaged in manufacturing and export of industrial equipments across multiple jurisdictions. For the…
2. Spectrum Media Network Ltd. is a listed company engaged in diversified media operations comprising television broadcasting, FM radio channels,…
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.…
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, CA R, the auditor, determined materiality at the planning…
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. ABC Retail & Logistics Ltd. has established several internal controls to safeguard its assets and ensure reliable financial reporting. Cash and…
8. RS & Associates, Chartered Accountants, were appointed as the statutory auditors of Zene Biotech Limited, a company engaged in manufacturing…
9. ST & Associates, Chartered Accountants, were conducting the statutory audit of Rose Ltd. for the financial year ended 31st March, 2026. During the…
10. RST & Associates, Chartered Accountants, were conducting the statutory audit of Gee Infrastructure Ltd. for the financial year ended 31st March,…
11. KLM & Co., Chartered Accountants, were appointed as statutory auditors of S Ltd. During the audit of bank borrowings, the auditors examined the Cash…
12. VSN & Associates, Chartered Accountants, were appointed as statutory auditors of Ema Energy Limited for the financial year ended 31st March, 2026.…
13. Helping Hands Charitable Institution is a registered charitable institution engaged in providing free education and healthcare services. During the…
14. CA Arvind Kapoor is conducting the statutory audit of Chem Energy Limited for the year ended 31st March, 2026. The audit is substantially complete…
15. NRS & Associates, Chartered Accountants, were conducting the statutory audit of Perry Industries Limited for the year ended 31st March, 2026. During…
16. PNK & Associates, Chartered Accountants, were appointed as statutory auditors of Gala Telecom Limited for the financial year ended 31st March, 2026.…
17. Explain the responsibilities of the engagement partner under SA 220, Quality Control for an Audit of Financial Statements in relation to: (i)…
18. State the circumstances in which, while reporting on financial statements containing corresponding figures, the auditor is required to refer to the…
19. Explain how SA 700 (Revised) seeks to achieve a balance between global uniformity in auditor reporting and the need to provide more useful…
20. Sunshine Electronics Limited manufactures and sells consumer electronic products on credit to dealers across the country. During the statutory audit…
21. M/s TKR & Associates, Chartered Accountants, were conducting the statutory audit of Digital Solutions Ltd., a company operating in a highly…
22. MP Infrastructure Limited for the financial year ended 31st March, 2026. The company had multiple manufacturing units, several ongoing projects and…
23. CA Ananya Sharma was appointed as the statutory auditor of Vertex Textiles Limited for the financial year 2025-26. During the audit, the company…
24. Zeta Manufacturing Limited, a public company, expanded its operations during the financial year 2025–26 by issuing additional equity shares. The…
25. CA Neha Arora was appointed as the statutory auditor of Stellar Healthcare Limited for the financial year 2025-26. During the course of audit, she…
26. XYZ & Co., Chartered Accountants, have been appointed as the statutory auditors of Ess Kay Engineering Limited, a listed company engaged in…
27. PQR & Associates, Chartered Accountants, have been appointed as the statutory auditors of Star Electronics Limited. During the planning stage, the…
28. RKS & Associates, Chartered Accountants, were appointed as statutory auditors of National Prosperity Bank Ltd. for the financial year ended 31st…
29. An audit firm is engaged to audit a company for the financial year 2025–26. The financial statements prepared by management reflect a profit before…
30. While auditing the valuation of finished goods, the auditor examines the basis used by management for determining cost. The accountant provides…
31. A practitioner is engaged to perform two different types of assurance engagements—one requiring a high level of assurance and another requiring a…
32. Prime Infrastructure Limited appointed K & Co., Chartered Accountants, as its statutory auditors for the year ended 31st March, 2026. During the…
33. My Vision Electronics Limited, a company engaged in the manufacture of consumer electronic products, was undergoing statutory audit for the year…
34. Nimbus Digital Solutions Limited, engaged in providing technology-enabled business services, has several intangible assets recorded in its financial…
35. During the statutory audit of Very Good Electricals Limited for the year ended 31st March, 2026, S & Co., Chartered Accountants, considered the…
36. Tablet Pharmaceuticals Limited, a listed company engaged in the manufacture of pharmaceutical products, appointed P & Co., Chartered Accountants, as…
37. While conducting the audit of Shree Engineering Limited for the year ended 31st March, 2026, A & Co., Chartered Accountants, were required to…
38. During the statutory audit of Gala Retail Limited for the year ended 31st March, 2026, the Bank Reconciliation Statements (BRS) prepared for the…
39. Green Manufacturing Limited was undergoing its statutory audit for the year ended 31st March, 2026. The company had been audited by R & Co.,…
40. Precision Auto Components Limited, a manufacturer of automobile parts, was undergoing its statutory audit for the year ended 31st March, 2026. The…
41. PQR Ltd. has been sanctioned a cash credit facility of ₹30 crores by ABC Bank Ltd. During the financial year 2025-26, the drawing power available to…
42. Zene Investments Limited, an investment company, held a significant portfolio of investments as at 31st March, 2026. During the audit, the…
43. Sunrise Foundation, a registered charitable trust engaged in providing free healthcare services in rural areas, appointed A & Co., Chartered…
44. Riverdale Municipal Corporation incurred substantial expenditure during the year 2025–26 on various civic services and development projects. During…
45. Nova Industries Limited, a listed company engaged in the manufacture of industrial equipment, appointed KR & Co., Chartered Accountants, as its…
46. Explain the factors that determine the type of modified opinion to be expressed by the auditor. In this context, explain how the nature of the…
47. The State Government sanctioned expenditure for various public welfare and administrative activities during the year 2025–26. During the course of…
48. Explain the matters that are required to be stated in the “Auditor's Responsibilities for the Audit of the Financial Statements" section of the…
49. You are the auditor of a bank. During the audit, you are required to verify the provisions and contingencies recognised by the bank for the year.…