Auditing & Ethics (Auditing) | Study Material

Auditing & Ethics | Self-Learning Study Material is a comprehensive, concept-driven text tailored for CA Intermediate – Group II | Paper 5. It offers a balance between academic depth and exam-oriented clarity. Updated till 30th September 2025, this Edition captures all statutory, ethical, and professional amendments—covering the Code of Ethics (2020 & 2024 editions), revised Engagement & Quality Control Standards (SQC 1 and SA 220), CARO 2020, and the Companies Act, 2013. Written in a learner-friendly style, this self-learning manual enables students to internalise auditing principles through logical flowcharts, tabular explanations, conceptual linkages, and revision aids, thereby transforming complex regulatory and ethical frameworks into simple, digestible learning blocks.

The Present Publication is the 15th Edition, authored by CA. Pankaj Garg, with the following noteworthy features:

• [Comprehensive & Updated Coverage] Incorporates all latest changes in Company Law, Code of Ethics (Revised 2024), Engagement & Quality Management Standards (SQC 1, SA 220), and Audit Report Revisions
• [Self-learning Framework] Designed for independent study with logical sequencing, clear definitions, and incremental learning
• [Tabular and Flowchart Presentation] Complex inter-relations (e.g., risk assessment, audit evidence, and quality control) are condensed into comparative tables and visual connectors
• [Concept-application Integration] Links theoretical propositions with audit cases, firm policies, and procedural examples
• [Revision-friendly Format] Summaries, checkpoints, and key-term highlights at every chapter end
• [Exam-aligned Language] Concise, point-wise drafting supports easy memorisation and replication in ICAI exam papers
• [Pedagogical Reinforcement] 'Quick Recap,' 'Concept Check,' and 'Practical Insight' boxes ensure balanced cognitive recall

The text systematically covers 11 chapters, each building on the previous, as per ICAI's module:

• Nature, Objective & Scope of Audit
• Core audit philosophy, independence, and professional judgement
• Audit Strategy, Planning & Programme
• Risk-based approach, engagement planning, and documentation
• Risk Assessment & Internal Control
• Identification, testing, and evaluation of control frameworks
• Audit Evidence
• Nature, sufficiency, reliability, sampling, and analytical procedures
• Audit of Items of Financial Statements
• Verification, valuation, and substantive testing of key account areas
• Audit Documentation
• Standards on documentation, retention policies, and confidentiality
• Completion & Review
• Final review procedures, subsequent events, and going-concern assessment
• Audit Reports
• Form, content, modifications, and responsibilities under SA 700–720 series
• Special Audits
• Statutory and regulatory audits of different entities (NPOs, firms, LLPs, etc.)
• Audit of Banks
• Comprehensive audit programme aligned with RBI guidelines, provisioning norms, and NPAs
• Ethics & Terms of Audit Engagements
• Core professional ethics, independence threats, SQC 1, and SA 220 principles

The structure of the book is as follows:

• Concept-first Design – Each chapter begins with a brief conceptual overview, followed by detailed discussions supported by diagrams and tables
• Progressive Flow – Concepts progress from general audit theory to specialised engagements and ethical control systems
• Quick Learning Boxes – 'Remember' and 'Practical Tip' boxes for relevance and retention.
• Self-assessment Tools – Chapter-end MCQs, short notes, and revision tables consolidate learning outcomes
• Visual Continuity – Flowcharts show linkages between standards (e.g., SA 200–SA 299 and SA 500–SA 700 families)