CA Inter Auditing and Ethics study guide
CA Inter Auditing and Ethics · Work through your exam, one topic at a time.
CA Intermediate – Auditing and Ethics is the auditing paper within the ICAI Chartered Accountancy Intermediate course. It is intended for candidates who have completed the foundational level and are building the judgement needed to examine financial statements, assess risk and internal control, gather and evaluate audit evidence, and report under applicable standards. The CA Inter Auditing and Ethics study guide has 11 sections and about 3,986 words.
01Nature, Objective and Scope of Audit
Domain 1 tests whether you can state the purpose of a statutory audit in the words of SA 200 and separate it from investigation, review and certification work. The auditor's objective is to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to report in accordance with the auditor's findings.
384 words, about 2 min02Audit Strategy, Audit Planning and Audit Programme
Domain 2 tests the distinction between the overall audit strategy and the audit plan under SA 300, the use of materiality under SA 320, and the practical design of a written audit programme. The overall audit strategy sets the big picture before detailed work: characteristics of the engagement (reporting framework, size, industry), reporting objectives and timing, significant factors such as high-risk areas, and the nature and extent of resources such as staff, specialists and branch coverage.
360 words, about 2 min03Risk Assessment and Internal Control
Domain 3 examines how risk of material misstatement (inherent risk combined with control risk) is assessed and how that assessment drives the auditor's responses. SA 315 (Revised) requires understanding of the entity and its environment, the applicable financial reporting framework, and the system of internal control.
373 words, about 2 min04Audit Evidence
Domain 4 tests whether you can choose procedures that produce sufficient appropriate evidence and can grade evidence by reliability. SA 500 requires evidence sufficient in quantity and appropriate in relevance and reliability.
344 words, about 2 min05Audit of Items of Financial Statements
Domain 5 applies evidence concepts to specific line items, where cut-off, valuation and disclosure errors actually occur. For revenue, test occurrence and cut-off around the year end, read contracts for performance obligations, and check credit notes and returns after the year end.
331 words, about 2 min06Audit Documentation
Domain 6 tests SA 230: what must be on the audit file, in what form, and by when. Documentation must let an experienced auditor with no previous connection with the audit understand the nature, timing and extent of procedures performed, the results, the significant matters and the conclusions drawn.
346 words, about 2 min07Completion and Review
Domain 7 covers the final sweep before the report is signed: evaluating misstatements, subsequent events, going concern, written representations and quality review. The auditor accumulates uncorrected misstatements other than those clearly trivial, communicates them to management and those charged with governance, and evaluates whether they are material individually or in aggregate, including effect on ratios, covenants and trends.
359 words, about 2 min08Audit Report
Domain 8 tests whether you can build a report whose opinion, basis and statutory content all agree with the evidence. An unmodified opinion states that the financial statements give a true and fair view, or are prepared, in all material respects, in accordance with the framework.
391 words, about 2 min09Special Features of Audit of Different Types of Entities
Domain 9 tests whether you adapt the audit to the entity's governing law instead of mechanically applying the Companies Act. The auditor is appointed by the Comptroller and Auditor General of India under Section 139(5).
358 words, about 2 min10Audit of Banks
Domain 10 tests the overlay that banking law and RBI directions place on a normal audit. The Banking Regulation Act, 1949 governs: Section 29 prescribes the form of the balance sheet and accounts, and Section 30 the annual audit.
364 words, about 2 min11Ethics and Terms of Audit Engagements
Domain 11 covers the ICAI Code of Ethics and SA 210: the rules that decide whether you may accept the work at all. Integrity, objectivity, professional competence and due care, confidentiality, and professional behaviour.
376 words, about 2 min