CA Inter Auditing & Ethics: Ch 5–8 Important Questions, Exam-Focused Revision

CA Inter Auditing & Ethics: Ch 5–8 Important Questions: Preparing for CA Inter Auditing & Ethics requires clarity of concepts and regular writing practice. Chapters 5 to 8 form a major portion of the syllabus. Questions from these chapters are frequently asked in exams. Many of them test understanding rather than memory. This makes focused preparation very important.

This article explains CA Inter Auditing & Ethics: Ch 5–8 Important Questions in a structured way. The aim is to help students identify important areas, understand how questions are framed, and know what examiners expect in answers. The content is based on audit standards, practical procedures, and exam trends.

Importance of Chapters 5 to 8 in CA Inter Audit

Chapters 5 to 8 together cover a wide range of practical audit areas. These chapters deal with assertions, audit documentation, audit evidence, internal control, subsequent events, going concern, and audit reporting. Questions from these areas often carry medium to high weightage.

Students preparing for CA Inter Auditing & Ethics: Ch 5–8 Important Questions should focus on concepts, keywords, and step-wise answers. Writing answers in points helps in scoring better marks. These chapters also include many case-based and situation-based questions.

Chapter 5: Assertions and Audit of Financial Statements

Chapter 5 is one of the most scoring chapters. It introduces assertions, which are representations made by management in financial statements. Auditors use assertions to check possible material misstatements.

Questions related to assertions are part of the CA Inter Auditing and Ethics Important Questions and are often asked for short marks.

Important Assertion-Based Questions

Students should prepare differences and explanations of assertions. Commonly asked areas include:

• Assertions for the income statement

• Assertions for the balance sheet

• Meaning of occurrence, completeness, valuation, cut-off, and presentation

• Assertion-wise audit procedures

These questions also appear under CA Inter Audit Chapter-wise Questions and test conceptual clarity.

Audit of Share Capital and Borrowings

Share capital and borrowings are important balance sheet items. Questions test compliance with the Companies Act and audit procedures.

Important questions include:

• Audit of the issue of shares to directors or employees

• Reduction of share capital

• Auditor’s duty under Section 66

• Assertions related to borrowings

Such areas are part of Audit & Ethics Important Questions CA Inter and require answers with legal provisions and audit steps.

Trade Receivables and Direct Confirmation

Trade receivables are covered in detail in Chapter 5. Questions are often practical and linked with audit evidence.

Important questions include:

• Meaning and procedure of direct confirmation

• Alternative audit procedures when no reply is received

• Assertions for trade receivables

• Audit of doubtful debts

These questions also fall under CA Inter Audit tricky and case-based questions and test application skills.

Internal Control over Sales and Receivables

Internal control is a repeated exam area. Questions focus on segregation of duties and authorization procedures.

Students preparing for CA Inter Auditing & Ethics: Ch 5–8 Important Questions must understand:

• Internal control objectives

• Control over credit sales

• Control over the collection of receivables

Such questions are also linked with the Internal control important questions and require point-wise answers.

Audit of Cash, Inventory, and PPE

Audit of cash, inventory, and property, plant, and equipment forms the core of practical auditing.

Important Exam Areas

• Cash verification and surprise checks

• Bank reconciliation statement review

• Inventory count procedures

• Valuation of raw materials, WIP, and finished goods

• Physical verification of PPE

• Depreciation and impairment

These questions appear frequently as CA Inter Audit exam-oriented questions and test audit logic.

Chapter 6: Audit Documentation

Audit documentation is covered in Chapter 6. It explains working papers and audit files. Questions from this chapter are mostly theory-based but very scoring.

Important areas include:

• Meaning of audit documentation

• Objectives of working papers

• Contents of audit file

• Retention period

• Administrative changes

These topics are part of Ethics and audit working papers questions and are often asked for direct marks.

Significance of Professional Judgment

Chapter 6 also covers significant matters and professional judgment. Questions test understanding of situations that require special attention.

Students should prepare:

• Meaning of significant matters

• Examples of significant risk

• Role of completion memorandum

Such topics are also included in Audit theory conceptual questions and require simple explanations.

Chapter 7: Subsequent Events and Going Concern

Chapter 7 deals with two very important auditing standards. Questions from this chapter are often case-based.

Subsequent Events, Important Questions

• Meaning of subsequent events

• Audit procedures

• Auditor’s responsibility if management refuses changes

These are part of the CA Inter Audit Important Questions 2026 and are frequently tested.

Going Concern, Exam Focus

Important questions include:

• Auditor’s duty in a going concern assessment

• Material uncertainty and disclosure

• Types of audit opinions in going concern cases

These questions also come under the Audit reporting important questions.

Chapter 8: Audit Evidence, Reporting, and Communication

Chapter 8 is wide and includes many audit standards. Questions from this chapter test reporting skills and understanding of the auditor’s communication role.

Audit Evidence and Management Representation

Important exam areas include:

• Meaning of audit evidence

• Written representations

• Reliability of management representations

These questions are also linked with CA Inter Audit evidence & sampling, and test judgment.

Communication with Those Charged with Governance

Communication with TCWG is an important theoretical area.

Students should prepare:

• Meaning of TCWG

• Matters to be communicated

• Importance of timely communication

These questions often appear as CA Inter Audit Chapter-wise Questions and are easy to score.

Internal Control Deficiencies

Internal control deficiencies are explained under SA 265. Questions are mostly conceptual.

Important areas include:

• Meaning of control deficiency

• Significant deficiency

• Indicators of weak internal control

These are common Internal control important questions in exams.

Audit Report and SA 700 Series

Audit reporting is one of the most tested areas. Questions require structured answers.

Important topics include:

• Elements of an audit report

• Basis for opinion

• Emphasis of the matter paragraph

• Group and joint audit reporting

These are the Audit reporting important questions for CA Inter students.

How to Prepare CA Inter Auditing & Ethics: Ch 5–8 Important Questions

Students should follow a planned approach while preparing CA Inter Auditing & Ethics: Ch 5–8 Important Questions.

Helpful steps include:

• Understand each assertion clearly

• Practice writing answers daily

• Use headings and sub-headings

• Avoid lengthy paragraphs

• Focus on keywords in questions

This approach helps in handling CA Inter Audit exam-oriented questions confidently.