CS Professional · June 2026 · Paper 4.2
CS Professional Internal and Forensic Audit June 2026: paper analysis
Our own analysis of the official paper, as of 12 October 2026. The questions and answers belong to ICSI; read them on ICSI'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 | Authority and responsibility of an internal auditor | Internal Audit: Introduction and Overview |
| 1(b) | 5 | Laws and regulations governing internal audit in India | Internal Audit: Introduction and Overview |
| 1(c) | 5 | Factors statutory auditors examine to assess whether the internal audit system is commensurate with size and nature | Practices related to Internal Auditing |
| 2(a) | 5 | Format and contents of an audit issue sheet and considerations in communicating audit issues | Reporting under Internal Audit |
| 2(b)(i) | 2 | Purposes of vouching | Internal Audit Tools and Techniques |
| 2(b)(ii) | 3 | Reliability categories of audit documents based on origin and availability | Internal Audit Tools and Techniques |
| 2(c) | 5 | Use of AI and machine learning to strengthen internal controls | Emerging Issues and Challenges |
| 3(a) | 5 | Factors an internal auditor considers in analysing high employee attrition | Internal Audit of Specific Functions |
| 3(b)(i) | 3 | Key internal audit focus areas for a power distribution utility | Special Points relating to Internal Audit in various Entities |
| 3(b)(ii) | 2 | Audit procedures to evaluate operational efficiency and control effectiveness in a utility | Special Points relating to Internal Audit in various Entities |
| 3(c)(i) | 2 | Why control failures occur despite existing internal controls | Internal Controls |
| 3(c)(ii) | 3 | Inherent limitations of internal control systems | Internal Controls |
| 4(a) | 5 | Ways internal auditors assess organisational culture and cultural risk | Emerging Issues and Challenges |
| 4(b)(i) | 2 | Purpose and importance of an audit trail in computerised accounting | Internal Controls |
| 4(b)(ii) | 3 | Internal controls to verify functioning of audit trail in an ERP environment | Internal Controls |
| 4(c) | 5 | Applying the quality control standard on internal audit to strengthen engagement quality | Practices related to Internal Auditing |
| 4A(i)(a) | 3 | Controllable component of audit risk with examples | Internal Audit Engagements and Planning |
| 4A(i)(b) | 2 | Managing detection risk to keep audit risk low | Internal Audit Engagements and Planning |
| 4A(ii) | 5 | Special audit procedures for a charitable hospital | Special Points relating to Internal Audit in various Entities |
| 4A(iii) | 5 | Internal auditor responsibilities regarding the accounting function and financial records | Internal Audit: Introduction and Overview |
| 5(a) | 5 | Fraud indicators in diversion of working capital funds to group entities | Basic Concepts of Forensic Audit |
| 5(b) | 5 | Job roles of a Company Secretary in forensic audit | Basic Concepts of Forensic Audit |
| 5(c) | 5 | Corruption, asset misappropriation and financial statement fraud | Basic Concepts of Forensic Audit |
| 5(d) | 5 | Techniques investigators use to gather evidence in forensic audit | Audit and Investigations |
| 6(a) | 5 | Procedure for statutory auditors to report fraud under the Companies Act | Forensic Audit: Laws and Regulations |
| 6(b) | 5 | Meaning of cyber fraud and phishing versus vishing | Cyber Forensics |
| 6(c) | 5 | Distinguishing fraud from non-compliance | Basic Concepts of Forensic Audit |
| 6(d)(i) | 2 | Risks associated with blockchain technology | Emerging Issues and Challenges |
| 6(d)(ii) | 3 | Audit implications of blockchain-based records and smart contracts | Emerging Issues and Challenges |
| 6A(i) | 5 | Whether specified acts constitute fraud under section 447 and the responsible officer | Forensic Audit: Laws and Regulations |
| 6A(ii) | 5 | Rules of evidence under the Bharatiya Sakshya Adhiniyam relevant to forensic audit findings | Forensic Audit and Indian Evidence Law |
| 6A(iii)(a) | 2 | Traditional white-collar crime versus cybercrime | Cyber Forensics |
| 6A(iii)(b) | 3 | Role of the board and Company Secretary in protecting against cybercrime | Cyber Forensics |
| 6A(iv) | 5 | Behavioural red flags as early warning indicators of fraud | Fraud Detecting Techniques |
What stood out
- Part I (Q1 to Q4, 60 marks) on internal audit and Part II (Q5 and Q6, 40 marks) on forensic audit; choices in Q4/Q4A and Q6/Q6A.
- Emerging Issues and Challenges (AI and ML in controls, culture audit, blockchain) carried 15 marks, signalling a technology tilt.
- The forensic case in Q5 was worth 20 marks, with Basic Concepts of Forensic Audit alone accounting for 20 marks on the compulsory path.
- Internal Controls drew 10 marks through small split parts on control limitations and audit trails.
- Compulsory-path mix: 45 marks application problems, 35 marks case-based, 20 marks theory.
Practise the chapters that carried the marks
Basic Concepts of Forensic Audit, Internal Audit: Introduction and Overview, Emerging Issues and Challenges: study guides and practice questions in the CS Professional format.