Paper 5 of Group II of the Intermediate Course is CA Inter Auditing and Ethics. Auditing concepts, audit planning, risk assessment, audit evidence, financial statement items, audit reports, special audits, bank audits, and professional ethics are all covered in this 100-point paper.

Pupils getting ready for CA Intermediate should comprehend the ideas and discover how auditing standards are used in various contexts. For this paper, regular revision and response writing are also crucial.

CA Inter Auditing and Ethics Syllabus 2026-27

There are nine sections in the CA Inter Auditing and Ethics course. The following lists the main subjects along with an indication of their relative importance.

1. Nature, Objective and Scope of Audit

Weightage: 4%-6%

The fundamental ideas of auditing are presented in this section. It includes:

• Origin and meaning of audit
• Need for audit
• Objectives of audit
• Scope of audit
• Benefits of audit
• External audit engagements
• Qualities of an auditor
• Inherent limitations of an audit
• Relationship of auditing with other disciplines
• SA 200: Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance with Standards on Auditing

2. Audit Strategy, Audit Planning, and Audit Programme

Weightage: 8%-12%

The planning procedure used both before and during an audit is the main topic of this section.

• Auditor's responsibility to plan an audit
• Benefits of audit planning
• Planning as a continual and iterative process
• Preliminary engagement activities
• Client continuance and ethical requirements
• Overall audit strategy
• Audit plan
• Audit programme
• Documentation of audit strategy and audit plan
• SA 300: Planning an Audit of Financial Statements

3. Risk Assessment and Internal Control

Weightage: 8%-12%

This section discusses an entity's internal control system and audit risk.

• Audit risk
• Risk of material misstatement
• Inherent risk
• Control risk
• Detection risk
• Sampling and non-sampling risk
• Materiality
• Performance materiality
• Risk assessment procedures
• Understanding the entity and its environment
• Internal control
• Evaluation and testing of internal controls
• Internal control and IT environment
• Digital audit
• IT-related risks
• Automated environments
• Data analytics in audit
• SA 315
• SA 320
• SA 330

4. Audit Evidence

Weightage: 12%-18%

An essential component of the CA Inter Audit curriculum is audit evidence. This section addresses:

• Meaning of audit evidence
• Relevance and reliability
• Sufficient appropriate audit evidence
• Financial statement assertions
• Sources of audit evidence
• Test of controls
• Substantive procedures
• Test of details
• Substantive analytical procedures
• Evaluation of audit evidence
• Audit trail
• Internal audit function
• Internal financial control
• Audit sampling
• External confirmations
• Opening balances
• Related party relationships and transactions
• Analytical procedures
• SA 500
• SA 501
• SA 505
• SA 510
• SA 520
• SA 530
• SA 550
• SA 610

5. Audit of Items of Financial Statements

Weightage: 12%-20%

The audit processes for various financial statement items are covered in this section.

• Sales of products and services
• Interest income
• Rental income
• Dividend income
• Profit or loss on sale of investments
• Purchases
• Employee benefit expenses
• Depreciation
• Interest expenses
• Power and fuel expenses
• Rent
• Repairs
• Insurance
• Taxes
• Travelling expenses
• Miscellaneous expenses
• Share capital
• Reserves and surplus
• Long-term borrowings
• Trade payables
• Provisions
• Short-term borrowings
• Other current liabilities
• Land and buildings
• Plant and equipment
• Furniture and fixtures
• Vehicles
• Office equipment
• Goodwill
• Brands and trademarks
• Computer software
• Loans and advances
• Trade receivables
• Inventories
• Cash and cash equivalents
• Other current assets
• Contingent liabilities

6. Audit Documentation

The creation and upkeep of audit documentation are covered in this section.

• Meaning of audit documentation
• Nature and purpose of audit documentation
• Form, content and extent of documentation
• Completion memorandum
• Ownership and custody of audit documentation
• SA 230: Audit Documentation

7. Completion and Review

Weightage: 8%-12%

This section covers the work performed by the auditor while completing and reviewing the audit.

• Subsequent events
• Auditor's responsibilities regarding subsequent events
• Going concern assumption
• Events or conditions affecting going concern
• Audit procedures relating to going concern
• Evaluation of misstatements
• Written representations
• Management responsibilities
• SA 450
• SA 560
• SA 570
• SA 580
• Communication with those charged with governance
• Communication of deficiencies in internal control
• SA 260
• SA 265

8. Audit Report

Weightage: 8%-12%

The audit report and various audit opinions are explained in this section.

• Forming an opinion on financial statements
• Basic elements of an auditor's report
• SA 700
• Key Audit Matters
• SA 701
• Modified opinions
• Qualified opinion
• Adverse opinion
• Disclaimer of opinion
• SA 705
• Emphasis of Matter
• Other Matter paragraphs
• SA 706
• Comparative information
• Corresponding figures
• Comparative financial statements
• SA 710
• Branch audit
• Joint audit
• Reporting requirements under the Companies Act, 2013
• CARO

9. Special Features of Audit of Different Type of Entities

Weightage: 12%-18%

The audit of various organizations and entities is covered in this section.

• Government entities
• Local bodies
• Not-for-profit organisations
• Trusts and societies
• Partnership firms
• Educational institutions
• Hotels
• Clubs
• Hospitals
• Limited Liability Partnerships
• Cooperative societies

10. Audit of Banks

Additionally, the curriculum includes the fundamentals of bank auditing, such as:

• Accounting system in banks
• Audit approach
• Audit of revenue items
• Special considerations in bank audit
• Advances
• Non-Performing Assets (NPAs)

11. Ethics and Terms of Audit Engagements

Weightage: 8%-10%

Professional behavior and auditor independence are the main topics of the Ethics section.

• Meaning of ethics
• Need for professional ethics
• Principles-based approach and rules-based approach
• Integrity
• Objectivity
• Professional competence and due care
• Confidentiality
• Professional behaviour
• Independence of auditors
• Self-interest threat
• Self-review threat
• Advocacy threat
• Familiarity threat
• Intimidation threat
• Safeguards to independence
• Professional scepticism
• Preconditions for an audit
• Audit engagement
• Terms of audit engagement
• Recurring audits
• SA 210
• SQC 1
• SA 220

CA Inter Audit Preparation Strategy

Start With the ICAI Study Material

Start with the most recent ICAI study materials that are relevant to your test attempt. Paper 5 study materials are now listed by ICAI and are applicable starting in May 2027.
Mark key terminology, audit procedures, and Standards on Auditing after thoroughly reading the ideas.

Understand the Concepts

Memorization is not the main aspect of auditing. Make an effort to comprehend:

• Why an audit process is carried out
• Which risk is being addressed by the auditor?
• What proof is necessary?
• How the auditor comes to a decision
• How the conclusion is presented

Revise Standards on Auditing

Take brief notes to review the key SAs in the syllabus. When editing, pay attention to:

• The SA's goal
• Essential conditions
• The duties of an auditor
• Key terms
• Useful application

Practise Case-Based Questions

You can test your ability to apply an auditing idea to a circumstance by using case-based questions. Solve pertinent questions from ICAI curriculum and case scenario booklets after finishing each chapter.

Practise Answer Writing

Write replies to theory questions with concise headings and pertinent details. Don't write lengthy responses that don't directly answer the issue; instead, use the vocabulary provided in the ICAI study materials.

Revise Ethics Regularly

Shorter sessions can be used to review ethics. Take notes on the core values, risks to independence, and protections. Rather than saving these subjects for the last few days, revisit them frequently.

Solve Previous Question Papers

After finishing the syllabus, practice answering ICAI questions. This offers you experience managing the paper within the allotted time and clarifies how concepts are tested. Intermediate question papers for various test sessions are published by ICAI.

The foundations of auditing, risk assessment, internal controls, audit evidence, financial statement items, audit reports, special audits, bank audits, and professional ethics are all covered in CA Inter Auditing and Ethics.

For their exam attempt, students should adhere to the ICAI syllabus and schedule regular time for concept revision, case-based questions, and response writing. For intermediate students, ICAI also offers study guides, test questions, and case study materials.