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.

All Practice Exams

100+ Free CA Final Paper 3: Advanced Auditing Practice Questions

ICAI CA Final Paper 3: Advanced Auditing, Assurance and Professional Ethics practice questions are available now; exam metadata is being verified.

✓ No registration✓ No credit card✓ No hidden fees✓ Start practicing immediately

ICAI reports group-level pass percentages per attempt, not a fixed Paper 3 figure Pass Rate

100+ Questions

100% Free

1 / 100

Question 1

Score: 0/0

SA 330 deals with the auditor's responses to assessed risks. A 'substantive procedure' under SA 330 includes:

Tests of details and substantive analytical procedures

Risk assessment procedures at the planning stage

Tests of controls over the IT environment

Inquiry of those charged with governance about the strategy

to track

Same family resources

Explore More ICAI Chartered Accountancy (India)

Continue into nearby exams from the same family. Each card keeps practice questions, study guides, flashcards, videos, and articles in one place.

2026 Statistics

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?

A.No fewer than seven years from the auditor's report date

B.Five years from the financial year end

C.Three years from completion of the engagement

D.Ten years from the date of appointment

Explanation: SQC 1 requires audit firms to retain engagement documentation for a period no shorter than seven years from the date of the auditor's report, or the group auditor's report where applicable. This supports accountability and allows later inspection.

2SQC 1 applies to firms in respect of which engagements?

A.Only statutory audits of listed companies

B.Audits and reviews of historical financial information, and other assurance and related services engagements

C.Only audits where the audit fee exceeds a prescribed threshold

D.Only forensic and investigation assignments

Explanation: SQC 1 mandates a system of quality control for all engagements covered by the Standards on Auditing, Standards on Review Engagements, Standards on Assurance Engagements, and Standards on Related Services. Its scope is not limited to listed-company audits.

3Which element is NOT one of the elements of a system of quality control under SQC 1?

A.Leadership responsibilities for quality within the firm

B.Relevant ethical requirements

C.Mandatory rotation of the engagement office every three years

D.Engagement performance

Explanation: SQC 1 lists six elements: leadership responsibilities, ethical requirements, acceptance and continuance of client relationships, human resources, engagement performance, and monitoring. Rotation of the engagement office is not an SQC 1 element.

4Under SQC 1, an Engagement Quality Control Review (EQCR) is required for which engagements?

A.Only first-year audit engagements

B.Only engagements where a modified opinion is issued

C.All audit engagements without exception

D.Audits of financial statements of listed entities and other engagements meeting the firm's defined criteria

Explanation: SQC 1 requires an EQCR for all audits of listed entities and for any other audit or assurance engagements for which the firm has determined an EQCR is appropriate based on its criteria. The reviewer must be objective and competent.

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?

A.SA 200

B.SA 210

C.SA 220

D.SA 230

Explanation: SA 200 sets out the overall objectives of the independent auditor, including obtaining reasonable assurance about whether the financial statements are free from material misstatement, and explains professional skepticism and professional judgment.

6Professional skepticism, as defined in SA 200, requires the auditor to:

A.Assume management is dishonest in every engagement

B.Maintain a questioning mind and a critical assessment of audit evidence

C.Accept management representations without corroboration to save time

D.Rely entirely on the prior year's audit conclusions

Explanation: SA 200 describes professional skepticism as an attitude that includes a questioning mind, being alert to conditions indicating possible misstatement due to error or fraud, and a critical assessment of audit evidence. It does not presume dishonesty.

7Which Standard on Auditing addresses the auditor's responsibilities relating to fraud in an audit of financial statements?

A.SA 260

B.SA 265

C.SA 240

D.SA 250

Explanation: SA 240 deals with the auditor's responsibilities relating to fraud, including identifying and assessing risks of material misstatement due to fraud and responding to assessed fraud risks. It distinguishes fraudulent financial reporting from misappropriation of assets.

8Under SA 240, the primary responsibility for the prevention and detection of fraud rests with:

A.The internal auditor only

B.The Comptroller and Auditor General

C.The statutory auditor

D.Those charged with governance and management of the entity

Explanation: SA 240 makes clear that the primary responsibility for prevention and detection of fraud lies with those charged with governance and management. The auditor is responsible for obtaining reasonable assurance that the statements are free of material misstatement, whether from fraud or error.

9SA 210 requires that the agreed terms of an audit engagement be recorded in:

A.An audit engagement letter or other suitable form of written agreement

B.The auditor's report itself

C.An oral confirmation noted in working papers

D.A management representation letter

Explanation: SA 210 requires the auditor to agree the terms of the engagement with management or those charged with governance and to record them in an engagement letter or other suitable written agreement, covering the objective, scope, responsibilities, and reporting framework.

10Which Standard on Auditing deals with planning an audit of financial statements?

A.SA 330

B.SA 300

C.SA 315

D.SA 320

Explanation: SA 300 deals with the auditor's responsibility to plan an audit, including establishing an overall audit strategy and developing an audit plan. Adequate planning helps direct attention to important areas and identify problems on a timely basis.

About the CA Final Paper 3: Advanced Auditing Practice Questions

Verified exam format metadata for ICAI CA Final Paper 3: Advanced Auditing, Assurance and Professional Ethics is pending. The practice questions above remain available while official exam length, timing, passing score, fee, and administrator details are reviewed.

100+ Free CA Final Paper 3: Advanced Auditing Practice Questions

Explore More ICAI Chartered Accountancy (India)

ICAI CA Final Paper 1: Financial Reporting

ICAI CA Final Paper 2: Advanced Financial Management

ICAI CA Final Paper 4: Direct Tax Laws and International Taxation

ICAI CA Final Paper 5: Indirect Tax Laws

ICAI CA Foundation Paper 1: Accounting

ICAI CA Foundation Paper 2: Business Laws

Key Facts: CA Final Paper 3: Advanced Auditing Exam

Sample CA Final Paper 3: Advanced Auditing Practice Questions

About the CA Final Paper 3: Advanced Auditing Practice Questions