Auditing & Ethics (Auditing) | CRACKER

Auditing & Ethics | CRACKER ia a dedicated question-bank companion for CA-Intermediate Group II – Paper 5. It converts the complete syllabus—from the conceptual foundations of audit through the full framework of Standards on Auditing, financial statement line auditing, entity-specific audits, bank audits, and professional ethics—into examination-form practice. Volume 1 handles the descriptive component (theory questions and case studies); Volume 2 handles the objective component (individual MCQs and integrated case scenarios). Together they reproduce the exact descriptive-plus-objective architecture of the 100-mark paper, and every question is answered in the crisp, point-wise manner ICAI rewards. The book is built for the revision phase, where the task is no longer learning the subject but reproducing it accurately and at speed.

The Present Publication is the 18th Edition, authored by Pankaj Garg. The noteworthy features of the book are as follows:

• [Dual Arrangement (Topic-wise & Attempt-wise)] Questions are arranged both topic-wise and attempt-wise, so a concept can be drilled in isolation or tracked across past papers to read its recurrence and weightage
• [Point-wise Model Answers] Answers are point-wise throughout, written to mirror the marking style of the institute, making them quick to revise and easy to reproduce in the exam hall
• [Marks-distribution Tables] Every chapter opens with a chapter-wise marks-distribution table spanning the most recent attempts (descriptive distribution in Volume 1, MCQ distribution in Volume 2), letting effort be allocated by examination weightage
• [Source-tagged Questions] Each question carries its source tag—past attempt, RTP or MTP—turning the book into a verifiable record of what has actually been asked rather than illustrative practice
• [Exam, RTP & MTP Coverage] Coverage of Past Examinations, Revision Test Papers (RTPs) and Mock Test Papers (MTPs) up to the May 2026 Exam
• [Latest Solved Paper] The fully solved May 2026 paper, with suggested answers, is included in both volumes—descriptive answers in Volume 1, MCQs and case scenarios in Volume 2
• [Extensive Question Bank] Approx. 810+ descriptive questions and case studies in Volume 1; approx. 480 individual MCQs and 90 case scenarios in Volume 2
• [Integrated Case Scenarios] Volume 2 case scenarios are full, multi-issue business situations—covering matters such as advance classification, drawing-power computation, security and NPA assessment—each followed by a set of linked MCQs, replicating the integrated-case format of the paper

The two volumes together cover the complete examinable content of the subject, including:

• Nature, Objective & Scope of Audit
• The nature, objective and scope of audit, its inherent limitations, and the distinction between audit, investigation and other assurance engagements
• Standards on Auditing Framework
• The full framework of Standards on Auditing, spanning overall objectives and engagement terms, planning and materiality, risk assessment and responses, audit evidence and its specific-item considerations, sampling, external confirmations, opening balances, related parties and analytical procedures, through to subsequent events, going concern, written representations, governance communication and the complete suite of reporting standards
• Audit Strategy & Planning
• Audit strategy, planning and the audit programme
• Risk Assessment & Internal Control
• Risk assessment, materiality, internal control and its evaluation and testing—extended to auditing in an automated environment, manual and automated control elements, data analytics, digital audit and Internal Financial Controls
• Audit of Financial-Statement Items
• Verification and assertion-level auditing of individual financial-statement items across equity, borrowings, receivables and payables, cash, inventories, fixed and intangible assets, provisions and contingencies, and items of income and expenditure
• Documentation, Completion & Review
• Audit documentation, completion-and-review procedures, and the evaluation of misstatements
• Audit Reports & Reporting Obligations
• Forming and modifying the audit opinion, emphasis-of-matter and key-audit-matter reporting, comparatives, branch and joint audit, and reporting obligations under the Companies Act and CARO 2020
• Audit of Different Types of Entities
• Special features in the audit of government, local bodies, NGOs, partnership firms, LLPs, charitable, educational and hospital entities, cinemas and clubs, hire-purchase and leasing companies, hotels and co-operative societies
• Audit of Banks
• Banking operations, the auditing framework, classification of advances, drawing-power computation, and the audit of advances, income and expenses
• Ethics & Terms of Engagement
• The fundamental principles, auditor independence, professional skepticism, agreeing engagement terms, and firm- and engagement-level quality control

A single eleven-chapter spine runs identically across both volumes, so any topic can be practised first as a written answer and then tested in objective form without changing reference points.

• Volume 1 | Descriptive Questions & Case Studies — The eleven chapters, each presenting questions sequenced under fine-grained topic heads (with many topics mapped to individual Standards on Auditing), answered point-wise and tagged to source; the volume closes with suggested answers to the descriptive section of the May 2026 paper
• Volume 2 | General MCQs & Case Scenarios — Two parts—Part A (Individual MCQs, chapter-wise) and Part B (Case Scenarios, arranged chapter-wise, topic-wise and attempt-wise, with an added Miscellaneous Topics set)—closing with suggested answers to the objective section of the May 2026 paper
• Within every chapter the internal architecture is uniform: a marks-distribution snapshot of recent attempts, followed by questions ordered by topic, each tagged to its attempt/RTP/MTP origin and answered in structured points