CA Intermediate · September 2026 · Paper 5
CA Intermediate Auditing and Ethics September 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 | Auditor considerations before agreeing to change an audit engagement to one giving lower assurance | Ethics and Terms of Audit Engagements |
| 1(b) | 5 | Limits on using internal auditors for direct assistance and the written agreements required | Risk Assessment and Internal Control |
| 1(c) | 4 | Auditor responsibilities on going concern and the response when a material uncertainty is not disclosed | Completion and Review |
| 2(a) | 5 | Auditor duties for subsequent events found before and after the report is issued, and meaning of issue date | Completion and Review |
| 2(b) | 5 | Relevance and reliability of evidence, and what documentation must let an experienced auditor understand | Audit Documentation |
| 2(c) | 4 | Meaning of independence and engagement partner duties when a team member has a client business relationship | Ethics and Terms of Audit Engagements |
| 3(a) | 5 | Other matters reportable under the Companies Act audit report rules beyond the intermediary funding representation | Audit Report |
| 3(b) | 5 | Familiarity threat from long association, statutory rotation safeguards and situations creating the threat | Ethics and Terms of Audit Engagements |
| 3(c) | 4 | Recognition of dividend income and Schedule III disclosure of undisclosed income detected in a search | Audit of Items of Financial Statements |
| 4(a) | 5 | Identifying the audit risk component raised by inadequate sample sizes and how to reduce it | Risk Assessment and Internal Control |
| 4(b) | 5 | Audit procedures for existence and completeness of cash balances held at multiple locations | Audit of Items of Financial Statements |
| 4(c) | 4 | Whether an undisclosed contingent claim falls within audit scope, and key points on scope of an audit | Nature, Objective and Scope of Audit |
| 5(a) | 5 | Inquiries and risk assessment procedures to understand related party relationships and transactions | Audit Evidence |
| 5(b) | 5 | Audit procedures for specific revenue and receivable items of a club and a hotel | Special Features of Audit of Different Type of Entities |
| 5(c) | 4 | CARO reporting on auditor resignation, internal audit system and cash losses | Audit Report |
| 6(a) | 5 | Sanctioned limit versus drawing power, irregular accounts and stock audit under consortium lending | Audit of Banks |
| 6(b) | 5 | Elements of the control environment considered when understanding internal control | Risk Assessment and Internal Control |
| 6(c) | 4 | Factors considered in establishing the overall audit strategy | Audit Strategy, Audit Planning and Audit Programme |
| 6(c) OR | 4 | Verification steps for deletions of intangible assets | Audit of Items of Financial Statements |
What stood out
- The MCQ part was spread thinly: ten chapters were tested, none with more than two questions, so selective study is risky.
- Almost every descriptive sub-question is framed as a short case, and answers need the relevant Standard on Auditing applied to facts rather than recalled lists.
- Completion-stage Standards (going concern, subsequent events, written representations, misstatements) were tested in both parts, together worth about 18 marks.
- Ethics and independence returned strongly with two descriptive sub-questions plus an MCQ on client acceptance.
- Company audit reporting appeared through both Rule 11 matters and CARO, while bank audit was limited to one advances question and one MCQ.
Practise the chapters that carried the marks
Risk Assessment and Internal Control, Ethics and Terms of Audit Engagements, Completion and Review: study guides and practice questions in the CA Intermediate format.