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

How to Prepare for CA Intermediate Auditing and Ethics

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Question directory and available solutions

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

1. Shree Foods Private Ltd., engaged in the production and distribution of packaged snacks. To increase sales, it introduced volume discounts and…
2. Green Peak Ltd., a leading producer of sustainable packaging material manufactures a range of products including corrugated boxes and paper…
3. XYZ bank, a scheduled commercial bank, is preparing its financial statements for the financial year ended on 31 st March, 2026. During the financial…
4. As part of a firm's system of quality control for audits of financial statements, a monitoring process is designed to provide reasonable assurance…
5. The engagement partner CA B, while evaluating and reporting on the designs and efficiency of internal financial controls at GHB Ltd., also…
6. While auditing the financial statements of Triveni Manufacturing Ltd. for the year ended 31/03/2026, the auditor observed that the company had…
7. Determine the attitude that the engagement partner expects the audit team to maintain in the above situation. Which risks can be reduced while…
8. Distinguish briefly between the principles-based approach and the rules-based approach to ethics.
9. Identify and briefly explain the sampling method being used by CA R in the above situation.
10. State the important consideration that an auditor should keep in mind while using this method and how the risk arising from such sampling can be…
11. Further, the audit partner suggests that instead of this approach, CA R should verify the first 150 customer accounts appearing in the receivables…
12. During the statutory audit of Orion Manufacturing Ltd., the auditor, CA Raghav Mehta, observed that the company's management had changed during the…
13. During the audit of Urban Build Constructions Ltd., the auditor reviewed the accounting information system used for recording and processing…
14. What are the Disadvantages of an Audit programme (Any 3)?
15. How can these Disadvantages be minimized?
16. Discuss the reporting requirements of the auditor under CARO, 2020.
17. Discuss the disclosure requirements of Shareholding of Promoters under Schedule III (Part I) of the Companies Act, 2013.
18. Briefly explain factors to be considered by CA Y in determining the sample size for tests of controls.
19. Based on the above information, which company will require a larger sample size and why?
20. Where should the "Basis for Opinion" section be included in the auditor's report?
21. What are the key elements included in this section?
22. During the audit of a manufacturing company, the engagement team encountered several complex areas requiring careful evaluation. The audit senior…
23. Bright Star Foods Limited processes a large volume of daily sales and purchases using automated accounting software. Most transactions are recorded…
24. While auditing the financial statements of Moon Ltd. for the year ended 31 March 2026, the auditor was verifying the disclosures relating to trade…
25. Apex Infra Ltd. is a mid-sized infrastructure company engaged in construction of highways and bridges. During the statutory audit, the auditor…
26. Identify and briefly explain the type of shares the company is planning to issue.
27. State the conditions that the auditor should verify which must be complied with for valid issue of such shares under the Companies Act, 2013.
28. Analyse the above arrangements and determine the appropriate classification of lease in case of Manufacturing Equipment and Specialised…
29. As a senior auditor of STP Ltd., suggest the accounting treatment and Tax benefits for:Manufacturing EquipmentSpecialised Manufacturing Equipment
30. ABC Ltd. is a listed company with an annual turnover of 1,000 crores. The company has appointed three joint auditors, ST and Associates, TR and…
31. M/s PJ Shrimali & Co., Chartered Accountants, were appointed as the statutory auditors of Pristine Limited. Before commencing the audit, the…
32. State and briefly explain the type of paragraph that the auditor should include in the auditor's report in the above circumstances.
33. With reference to SA 710, list the information that should be included in this paragraph regarding the prior period financial statements.
34. SP Co-operative Ltd. is a large co-operative organisation engaged in multiple activities. During audit, the auditor observed that although the…