CA Inter Auditing and Ethics MCQs 2026: Practice Questions

CA Inter Auditing and Ethics MCQs are an important part of the preparation for the CA Intermediate Paper 5 examination. The May 2026 paper included 30 marks of Multiple Choice Questions (MCQs), followed by a 70-mark descriptive section. The paper tested students on practical auditing situations, auditing standards, risk assessment, sampling, internal controls, banking audit, quality control, and professional ethics.

The Institute of Chartered Accountants of India (ICAI) has also published the May 2026 MCQ questions and answer keys for Intermediate students.

Students preparing for upcoming attempts can use these CA Inter Audit MCQs with answers to understand the question style and practice applying auditing concepts to case-based situations.

CA Inter Auditing and Ethics MCQs 2026 Overview

The CA Inter Auditing and Ethics MCQs 2026 are an important part of Paper 5 of the CA Intermediate Group II examination. For the May 2026 exam, ICAI included Paper 5: Auditing and Ethics and published the official MCQ questions and answer keys for students' reference.

The May 2026 paper required candidates to answer all MCQs in Part I and then attempt the descriptive questions in Part II. The MCQs were based on practical case scenarios as well as individual auditing concepts.

CA Inter Auditing Questions Based on Case Scenarios

One of the notable features of the May 2026 paper was the use of case scenarios. Instead of asking only direct theoretical questions, ICAI presented practical situations and asked students to identify the correct auditing principle or procedure.

For example, one case involved a company that had increased sales through volume discounts and extended credit facilities. The auditor had to understand the internal control system, select samples, identify misstatements and evaluate written representations.

This type of question tests whether students can apply auditing concepts rather than simply memorise them.

CA Inter Audit Practice Questions PDF Download

Students can download the CA Inter Audit Practice Questions PDF from the link given below and use it for revision and MCQ practice. The PDF can help students practice important CA Inter Auditing and Ethics MCQs and strengthen their preparation for Paper 5: Auditing and Ethics. ICAI has also published the May 2026 MCQ questions and answer keys for Intermediate students.

CA Inter Audit Practice Questions PDF Download

CA Inter Auditing MCQs: Substantive Analytical Procedures

Substantive analytical procedures were another important area tested in the May 2026 paper. Students should understand the different types of analytical procedures, including:

Trend Analysis

The auditor compares financial information over different periods to identify trends and unusual movements.

Ratio Analysis

The auditor calculates and compares ratios such as inventory turnover or profitability ratios.

Reasonableness Tests

The auditor develops an expectation using available information and compares it with the recorded amount.

Structural Modelling

The auditor uses relationships between financial and non-financial data to estimate an expected amount.

For example, estimating electricity expenses using production volume and historical power consumption can involve a statistical or structural model.

How to Prepare for CA Inter Audit MCQs

Students preparing for the next CA Intermediate attempt should follow a practical approach.

1. Understand the Concept First

Do not rely only on memorising answers. Understand why an option is correct and why the other options are incorrect.

2. Practice Case-Based Questions

The May 2026 paper shows the importance of applying auditing concepts to practical situations. Therefore, practice case-based MCQs regularly.

3. Revise SA Numbers

Pay special attention to important Standards on Auditing such as:

• SA 210

• SA 230

• SA 300

• SA 315

• SA 330

• SA 500

• SA 530

• SA 580

• SA 705

• SA 710

4. Practice Without Looking at the Answers

Try to solve the question first and then check the answer. This will help improve both accuracy and speed.

5. Revise ICAI Material

Students should prioritise ICAI study material, revision test papers, mock test papers and official MCQ material while preparing for the examination. ICAI has also conducted exam-oriented sessions specifically covering case scenario-based MCQs and descriptive questions.

Regular practice is important for performing well in CA Inter Auditing and Ethics MCQs. Students should first understand the relevant auditing concepts and Standards on Auditing and then practise objective and case-based questions to strengthen their application skills.

For upcoming attempts, prioritise ICAI study material, official MCQs, revision test papers and mock test papers. Reviewing incorrect answers after each practice session can also help identify conceptual gaps and improve accuracy in Paper 5.