CA Final · January 2026 · Paper 3
CA Final Advanced Auditing, Assurance and Professional Ethics January 2026: paper analysis
Our own analysis of the official paper, as of 12 October 2026. The questions and answers belong to ICAI; read them on ICAI's website.
Chapter-wise marks
Where the marks were in this paper (out of 100; internal-choice alternatives not double counted).
What each question tested
In our words, by question number. Open the official paper for the full question.
| Q | Marks | Tests | Chapter |
|---|---|---|---|
| 1(a) | 5 | Choosing the type of modified opinion where material items cannot be verified, and drafting the opinion and basis for opinion paragraphs | Reporting |
| 1(b) | 5 | Evaluating uncorrected misstatements, including factual, judgmental and projected misstatements, and related communication requirements | Audit Planning, Strategy and Execution |
| 1(c) | 4 | Leadership responsibilities for quality within a firm under SQC 1, including incentives, competence and resource allocation | Quality Control |
| 2(a) | 5 | Professional misconduct of an incoming joint auditor who accepts appointment without verifying the removal procedure was followed | Professional Ethics & Liabilities of Auditors |
| 2(b) | 5 | Principles of an adequate internal check system: segregation of duties, job rotation and stock records, and their effect on risk | Materiality, Risk Assessment and Internal Control |
| 2(c) | 4 | Role of analytical procedures in a review engagement providing limited assurance on financial statements | Review of Financial Information |
| 3(a) | 5 | Identifying propriety audit in a public sector project and explaining its principles | Overview of Audit of Public Sector Undertakings |
| 3(b) | 5 | Handling client money received for statutory payments: separate bank account requirement and misconduct | Professional Ethics & Liabilities of Auditors |
| 3(c) | 4 | Audit implications and common risks of robotic process automation in business processes | Digital Auditing & Assurance |
| 4(a) | 5 | Reporting on summary financial statements derived from audited statements carrying a qualified or adverse opinion | Reporting |
| 4(b) | 5 | Ethical implications of a firm sponsoring an Institute programme and a partner's name and firm logo on CSR publicity | Professional Ethics & Liabilities of Auditors |
| 4(c) | 4 | Identifying the human and manufactured capitals under the Integrated Reporting framework | Sustainable Development Goals (SDG) & Environment, Social and Governance (ESG) Assurance |
| 5(a) | 5 | CARO applicability to a private company and where going concern, fraud and fund-utilisation matters are reported otherwise | Reporting |
| 5(b) | 5 | Fraud risk factors indicating fraudulent financial reporting identified during risk assessment | General Auditing Principles and Auditors Responsibilities |
| 5(c) | 4 | Contingent fee arrangements for a mystery audit assignment and professional misconduct | Professional Ethics & Liabilities of Auditors |
| 6(a) | 5 | Steps in planning and conducting a due diligence review for a proposed acquisition of a technology company | Due Diligence, Investigation & Forensic Accounting |
| 6(b) | 5 | Audit procedures for bank investments: segregation of functions, outstanding bank receipts and reclassification between categories | Special Features of Audit of Banks & Non-Banking Financial Companies |
| 6(c) | 4 | Auditor's duties while examining prospective financial information with unreasonable assumptions | Prospective Financial Information and Other Assurance Services |
| 6(c) OR | 4 | Auditor's course of action and withdrawal from engagement when management refuses to act on material fraud | General Auditing Principles and Auditors Responsibilities |
What stood out
- Reporting dominated the paper, appearing in four MCQs and three written parts, including drafting a modified opinion and reporting on summary financial statements.
- Banks and NBFC audit carried 11 marks overall, mixing NBFC registration and net owned fund rules, NPA provisioning and the custody of liquid assets.
- Ethics contributed 25 marks across both parts, covering client money, sponsorship and publicity, contingent fees and incoming joint auditor duties.
- Technology was tested from three angles: audit trail controls, a denial-of-service scenario and the audit implications of robotic process automation.
- All written questions were case-based, so candidates had to apply standards to facts rather than reproduce lists.
Practise the chapters that carried the marks
Professional Ethics & Liabilities of Auditors, Reporting, Special Features of Audit of Banks & Non-Banking Financial Companies: study guides and practice questions in the CA Final format.