Auditing in CA Intermediate
Paper 6 — Auditing & Assurance — is one of the most distinct papers in CA Intermediate Group 2. It is not a numerical subject and not purely law-based. It tests your understanding of audit procedures, Standards on Auditing (SAs), and professional judgment. Many students underestimate it; those who prepare it properly find it highly scoring.
Key Topic Areas
- Nature and Objectives of Auditing: Definition, types of audits, objectives, inherent limitations
- Audit Planning and Risk Assessment: SA 300 (Planning), SA 315 (Identifying risks), SA 320 (Materiality)
- Audit Evidence: SA 500 (Nature and sufficiency), SA 505 (External confirmations), SA 510 (Opening balances)
- Internal Control: Components of internal control, COSO model, reporting on internal control
- Company Audit: Appointment, qualification, disqualification of auditor (Sections 139–148 of Companies Act)
- Audit Report: SA 700, 705, 706 — types of opinions (unmodified, modified — qualified, adverse, disclaimer)
- Special Audits: Audit of banks, NBFCs, stock brokers, government audits (CAG)
- CARO 2020: All reporting requirements — memorize the list
How to Study SAs
SAs follow a consistent structure: Objective → Definitions → Requirements → Application Material → Documentation. For each SA, extract just the Objective and Requirements. This is 20% of the content but delivers 80% of the exam marks.
💡 E-mentor Planner for CA Inter Auditing: Assign one SA per day in your planner. 20 SAs in 20 days, then 5 days on CARO and Company Audit provisions, then 5 days on Special Audits. This 30-day sprint covers the subject comprehensively with daily milestone tracking.
Exam Technique
- For SA-based questions: State the SA number and name → Quote the relevant requirement → Apply to scenario → Conclude
- For CARO questions: If asked "comment as an auditor," list the specific CARO clause and what must be reported under it
- Use ICAI language: "sufficient appropriate audit evidence," "material misstatement," "going concern" — these phrases signal to examiners that you know the standards