CA Inter Auditing and Ethics 2026-27: Syllabus, Pattern & Preparation

CA Inter Auditing and Ethics is Paper 5 of Group II in the Intermediate Course. The paper carries 100 marks and covers auditing concepts, audit planning, risk assessment, audit evidence, financial statement items, audit reports, special audits, bank audit and professional ethics.

Students preparing for CA Intermediate should understand the concepts and learn how auditing standards are applied in different situations. Regular revision and answer writing are also important for this paper.

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CA Inter Auditing and Ethics Syllabus 2026-27

The CA Inter Auditing and Ethics syllabus is divided into nine sections. The major topics and their indicative weightage are given below.

1. Nature, Objective and Scope of Audit

Weightage: 4%-6%

This section introduces the basic concepts of auditing. It covers:

• 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%

This section focuses on the planning process followed before and during an audit.

Topics include:

• 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 covers audit risk and the internal control system of an entity.

Important topics include:

• 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%

Audit evidence is an important part of the CA Inter Audit syllabus. This section covers:

• 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%

This section covers the audit procedures for different items appearing in financial statements.

Students need to study the audit of:

• 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

This section deals with the preparation and maintenance of audit documentation.

It covers:

• 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.

Important topics include:

• 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%

This section explains the audit report and different types of audit opinions.

It includes:

• 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%

This section covers the audit of different types of organisations and entities.

Topics include:

• Government entities

• Local bodies

• Not-for-profit organisations

• Trusts and societies

• Partnership firms

• Educational institutions

• Hotels

• Clubs

• Hospitals

• Limited Liability Partnerships

• Cooperative societies

Students also study the appointment of auditors, audit procedures and audit reports for different types of entities.

10. Audit of Banks

The syllabus also covers the basic aspects of bank audit, including:

• 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%

The Ethics section focuses on professional conduct and auditor independence.

Important topics include:

• 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

A clear study plan can help you cover the syllabus without leaving important chapters for the last few days.

Start With the ICAI Study Material

Begin with the latest ICAI study material applicable to your examination attempt. ICAI currently lists Paper 5 study material applicable from May 2027 onwards.

Read the concepts carefully and mark important definitions, audit procedures and Standards on Auditing.

Understand the Concepts

Auditing is not only about memorising points. Try to understand:

• Why an audit procedure is performed

• What risk the auditor is addressing

• What evidence is required

• How the auditor reaches a conclusion

• How the conclusion is reported

This makes revision easier and helps when questions are presented as practical situations.

Revise Standards on Auditing

Make short revision notes for the important SAs in the syllabus. While revising, focus on:

• Objective of the SA

• Key requirements

• Auditor's responsibilities

• Important terms

• Practical application

Practise Case-Based Questions

Case-based questions can test whether you can apply an auditing concept to a situation. After completing each chapter, solve relevant questions from ICAI material and case scenario booklets.

Practise Answer Writing

For theory questions, write answers using clear headings and relevant points. Use the terminology given in the ICAI study material and avoid writing very long answers that do not directly address the question.

Revise Ethics Regularly

Ethics can be revised in shorter sessions. Make notes for the fundamental principles, threats to independence and safeguards. Revise these topics repeatedly instead of leaving them for the final days.

Solve Previous Question Papers

Practise ICAI question papers after completing the syllabus. This helps you understand how concepts are tested and gives you practice in managing the paper within the available time. ICAI publishes Intermediate question papers for different examination sessions.

CA Inter Auditing and Ethics covers the fundamentals of auditing, risk assessment, internal controls, audit evidence, financial statement items, audit reports, special audits, bank audit and professional ethics. 

Students should follow the syllabus issued by ICAI for their examination attempt and give regular time to concept revision, case-based questions and answer writing. ICAI also provides study material, question papers and case scenario resources for Intermediate students.