CA Final · May 2026 · Paper 3
CA Final Advanced Auditing, Assurance and Professional Ethics May 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 | Refusal to allow direct communication with legal counsel on possible litigation: adequacy of written representations and impact on the audit opinion | Audit Evidence |
| 1(b) | 5 | Emphasis of Matter paragraph for a fundamental non-adjusting subsequent event, with reporting requirements and drafting of the paragraph | Reporting |
| 1(c) | 4 | Documentation requirements for a compilation engagement on financial statements of a partnership firm | Related Services |
| 2(a) | 5 | Significant audit findings to be communicated to those charged with governance, including disagreements on estimates and delays in information | Completion and Review |
| 2(b) | 5 | Permissible content of a practising member's write-up and designations under advertisement guidelines, including client data and awards | Professional Ethics & Liabilities of Auditors |
| 2(c) | 4 | Evaluating an entity's risk assessment process for cybersecurity risks at the audit planning stage | Digital Auditing & Assurance |
| 3(a) | 5 | Audit of compliance with prudential norms by a digital lending NBFC: asset classification, income recognition and governance | Special Features of Audit of Banks & Non-Banking Financial Companies |
| 3(b) | 5 | Anti-money laundering guidelines for members: client due diligence and record-keeping obligations of a practising adviser | Professional Ethics & Liabilities of Auditors |
| 3(c) | 4 | Auditor's reporting when a material uncertainty on going concern is adequately disclosed in the financial statements | Reporting |
| 4(a) | 5 | Evaluating reliance on a management's expert for a complex provision estimate, including competence, objectivity and need for an auditor's expert | Audit Evidence |
| 4(b) | 5 | Management's refusal to give written representations in a review engagement: auditor's response, disclaimer of conclusion and withdrawal | Review of Financial Information |
| 4(c) | 4 | Identifying the relevant BRSR principle on environmental protection and its core elements for a heavy-industry listed entity | Sustainable Development Goals (SDG) & Environment, Social and Governance (ESG) Assurance |
| 5(a) | 5 | Auditor's duties on fraud by an employee below the reporting threshold, CARO reporting and the Board's disclosure responsibilities | General Auditing Principles and Auditors Responsibilities |
| 5(b) | 5 | Internal auditor's follow-up of unresolved observations under Standards on Internal Audit and reporting to the Audit Committee | Internal Audit |
| 5(c) | 4 | Professional misconduct in issuing a fund-utilisation certificate without adequate verification | Professional Ethics & Liabilities of Auditors |
| 6(a) | 5 | Nature, timing and extent of examination procedures on prospective financial information based on hypothetical assumptions | Prospective Financial Information and Other Assurance Services |
| 6(b) | 5 | Investigating accountant's review of fixed assets in a business acquisition: age, revaluation, maintenance and idle assets | Due Diligence, Investigation & Forensic Accounting |
| 6(c) | 4 | Limits on fees for non-audit assignments accepted by a statutory auditor of an unlisted public company | Professional Ethics & Liabilities of Auditors |
| 6(c) OR | 4 | Key aspects in assessing efficiency during a performance audit of a government infrastructure project | Overview of Audit of Public Sector Undertakings |
What stood out
- Professional ethics was again the single largest written area, with four descriptive parts on advertisement rules, anti-money laundering duties, certification negligence and non-audit fee limits.
- The MCQ section was spread thinly across 14 chapters, with ESG and BRSR the only chapter tested twice; broad syllabus coverage mattered more than depth in any one area.
- Expert-related standards featured in both parts: using an auditor's expert in the MCQs and evaluating a management's expert in the written section.
- Newer areas were clearly tested: social engineering attack types, cybersecurity risk assessment and the BRSR environment principle each carried marks.
- Every descriptive question was a short case scenario; only the performance audit OR alternative was framed as a pure theory question.
Practise the chapters that carried the marks
Professional Ethics & Liabilities of Auditors, Audit Evidence, Reporting: study guides and practice questions in the CA Final format.