100+ Free CA Final Paper 3: Advanced Auditing Practice Questions
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Key Facts: CA Final Paper 3: Advanced Auditing Exam
100 marks
Paper Total
ICAI New Scheme 2023
30:70
MCQ to Descriptive Split
ICAI Exam Pattern
3 hours
Exam Duration
ICAI
No negative marking
MCQ Section
ICAI Exam Pattern
40% / 50%
Paper / Aggregate Pass
ICAI Examination Regulations
Group I
CA Final Group
ICAI New Scheme 2023
CA Final Paper 3 (Advanced Auditing, Assurance and Professional Ethics) is a 100-mark, 3-hour Group I paper under the ICAI New Scheme 2023. Assessment is 30% objective (compulsory MCQs with no negative marking) and 70% descriptive. The syllabus centres on Standards on Auditing (SQC 1 and SA 200-720), company audit under the Companies Act, 2013 (Section 143, CARO 2020, Rule 11 audit trail), audit of banks, NBFCs, insurance and PSUs, group and joint audits, assurance and related services, digital auditing, SDG/ESG assurance, due diligence, forensic accounting, and professional ethics under the Chartered Accountants Act, 1949. Passing requires 40% in the paper and 50% aggregate in the group.
Sample CA Final Paper 3: Advanced Auditing Practice Questions
Try these sample questions to test your CA Final Paper 3: Advanced Auditing exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.
1Under SQC 1 (Standard on Quality Control), what is the minimum retention period for engagement documentation prescribed by ICAI?
2SQC 1 applies to firms in respect of which engagements?
3Which element is NOT one of the elements of a system of quality control under SQC 1?
4Under SQC 1, an Engagement Quality Control Review (EQCR) is required for which engagements?
5Which Standard on Auditing deals with the overall objectives of the independent auditor and the conduct of an audit in accordance with Standards on Auditing?
6Professional skepticism, as defined in SA 200, requires the auditor to:
7Which Standard on Auditing addresses the auditor's responsibilities relating to fraud in an audit of financial statements?
8Under SA 240, the primary responsibility for the prevention and detection of fraud rests with:
9SA 210 requires that the agreed terms of an audit engagement be recorded in:
10Which Standard on Auditing deals with planning an audit of financial statements?
About the CA Final Paper 3: Advanced Auditing Exam
CA Final Paper 3, Advanced Auditing, Assurance and Professional Ethics, is a 100-mark Group I paper under the ICAI New Scheme 2023. It tests Standards on Auditing, company and specialised audits, assurance and related services, digital and ESG auditing, and professional ethics under the Chartered Accountants Act, 1949, using a 30% MCQ and 70% descriptive format.
Assessment
Question count not published by the exam provider
Time Limit
3 hours (180 minutes)
Passing Score
40% in the paper and 50% aggregate in Group I under ICAI examination regulations
Exam Fee
Included in the CA Final examination fee notified by ICAI; no separate per-paper fee is published (Institute of Chartered Accountants of India (ICAI))
CA Final Paper 3: Advanced Auditing Exam Content Outline
Standards on Auditing, Quality Control and Audit Process
SQC 1, SA 200-265 principles and risk, SA 300-330 planning and responses, SA 402-450 evidence and completion, and SA 500-580 evidence including going concern, estimates, related parties and written representations.
Audit Reporting and Company Audit
SA 700, 701, 705, 706, 710, 720; Companies Act, 2013 reporting under Section 143, CARO 2020, Rule 11 audit trail, internal financial controls, and fraud reporting under Section 143(12).
Audit of Banks, NBFCs, Insurance and PSUs
RBI IRAC norms, NPA classification, LFAR, NBFC scale-based regulation, IRDAI insurer reserving, and C&AG supplementary and propriety audit of public sector undertakings.
Specialised, Assurance and Related Services
Group and joint audits (SA 600, SA 299), review engagements (SRE 2400, 2410), prospective financial information (SAE 3400), service-organisation reports (SAE 3402), agreed-upon procedures (SRS 4400) and compilation (SRS 4410).
Digital Auditing and Emerging Areas
CAATs and data analytics, continuous auditing, artificial intelligence in audit, SDG and ESG assurance, BRSR Core, greenhouse-gas assurance under SAE 3410, due diligence, investigation and forensic accounting.
Professional Ethics and Liabilities
Code of Ethics fundamental principles and threats, Chartered Accountants Act, 1949 First and Second Schedules, professional misconduct clauses, Section 141/144/139 provisions, NFRA, and the disciplinary mechanism.
How to Pass the CA Final Paper 3: Advanced Auditing Exam
What You Need to Know
- Passing score: 40% in the paper and 50% aggregate in Group I under ICAI examination regulations
- Assessment: Question count not published by the exam provider
- Time limit: 3 hours (180 minutes)
- Exam fee: Included in the CA Final examination fee notified by ICAI; no separate per-paper fee is published
Keys to Passing
- Work through all 100 available questions
- Review every answer and explanation
- Track weak areas and revisit them
- Use our AI tutor for tough concepts
CA Final Paper 3: Advanced Auditing Study Tips from Top Performers
Frequently Asked Questions
How many questions are on CA Final Paper 3?
ICAI sets a 100-mark paper for Paper 3. Thirty marks are compulsory MCQs (case-style, with no negative marking) and 70 marks are descriptive questions answered in 3 hours. The precise number of MCQs varies by attempt.
What is the exam pattern for CA Final Advanced Auditing?
Paper 3 follows the 30:70 pattern under the New Scheme 2023: a 30-mark objective (MCQ) section that is compulsory with no negative marking, and a 70-mark descriptive section. The total is 100 marks in a 3-hour examination.
What is the passing score for CA Final Paper 3?
Under ICAI examination regulations, a candidate must secure at least 40% in each paper and 50% in aggregate across the group. Paper 3 is part of CA Final Group I along with Financial Reporting and Advanced Financial Management.
Which Standards on Auditing are most important in Paper 3?
The SA 500 series on audit evidence and the SA 700 series on audit reporting (including SA 700, 701, 705 and 706) carry high weight, alongside SQC 1, SA 200, 240, 315, 320 and 330, plus going concern under SA 570 and estimates under SA 540.
Does CA Final Paper 3 cover professional ethics?
Yes. Professional Ethics and Liabilities is a major component, covering the Code of Ethics fundamental principles and threats, the First and Second Schedules to the Chartered Accountants Act, 1949, professional misconduct clauses, and the ICAI disciplinary mechanism.
Are bank and group audits part of CA Final Paper 3?
Yes. The syllabus includes audit of banks (RBI IRAC norms, NPA classification, LFAR), NBFCs, insurance companies and PSUs, as well as group audits under SA 600 and joint audits under SA 299 (Revised).
What emerging areas are tested in Paper 3?
Emerging areas include digital auditing (CAATs, data analytics, continuous auditing, artificial intelligence), SDG and ESG assurance including BRSR Core and greenhouse-gas assurance, due diligence, investigation, and forensic accounting.
Is there negative marking in the MCQ section?
No. ICAI states that the 30-mark objective MCQ section in Paper 3 is compulsory and carries no negative marking, so candidates should attempt every MCQ.