Chartered Accountancy, Institute of Chartered Accountants of Pakistan (Scheme 2025) · CAF · Group B
ICAP CAF-8 Audit and Assurance Essentials: mock exams and practice questions
45 original exam-style questions for ICAP CAF-8 Audit and Assurance Essentials, with full timed mock exams in the real format and an explanation for every answer. Free for everyone until 31 January 2027.
- 45practice questions
- 4syllabus areas
- 3 hours 15 minutes including 15 minutes' reading time. Written paper in black penfull mock, like the real exam
ICAP CAF-8 exam format
3 hours 15 minutes including 15 minutes' reading time. Written paper in black pen, sat in February and August. Scheme 2025 syllabus, Spring 2027 (Mar-26 study material edition): ISAs (IAASB Handbook 2025 edition), ISRE 2400, Companies Act 2017 ss 246-251 and the ICAP Code of Ethics (Revised 2024). The pass mark is 50%.
| Section | Format | Marks |
|---|---|---|
| Section A | Question 1: 7 multiple-choice questions, 4 × 1 mark and 3 × 2 marks, four options each | 10 |
| Section A | Questions 2-4: a planning, risk or fraud scenario (10), an ethics scenario (10) and a two-part knowledge question on the audit framework and planning (9) | 29 |
| Section B | Questions 5-9: three audit evidence and internal control questions (3 × 11) and two finalization and reporting questions (2 × 14) | 61 |
| Total | 100 |
Syllabus areas covered
- A · Audit framework, regulations and ethics12 questions
- B · Planning and risk assessment6 questions
- C · Audit evidence and internal controls15 questions
- D · Finalization and reporting12 questions
Try 3 free ICAP CAF-8 questions
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Sample question 1 · A · Audit framework, regulations and ethics
ISA 200 explains that an auditor obtains reasonable, not absolute, assurance because of the inherent limitations of an audit. Which of the following is one of those inherent limitations?
- A The auditor may omit a procedure that has no alternative whenever the time or cost of performing it is high.
- B Written representations from management are accepted in place of other evidence for accounting estimates.
- C Management may not provide all relevant information, and the auditor has no legal power to compel disclosure or to investigate.
- D The auditor is responsible only for detecting fraud that management chooses to report to those charged with governance.
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Answer: C. ISA 200 requires the auditor to obtain reasonable assurance, a high but not absolute level, because of the inherent limitations of an audit (application material A47-A53):
- Nature of financial reporting: judgements and estimates involve subjective decisions and uncertainty.
- Nature of audit procedures: management or others may not provide complete information, whether intentionally or not; fraud may involve collusion or forgery; and an audit is not an official investigation, so the auditor has no legal powers such as search.
- Timeliness and the balance between benefit and cost: the audit is done within a reasonable time and at a reasonable cost, but this does not permit the omission of a procedure for which there is no alternative.
The correct option is a limitation arising from the nature of audit procedures.
Sample question 2 · C · Audit evidence and internal controls
The auditor selects a sample of goods dispatch notes from the warehouse's sequentially numbered file and traces each one to the related sales invoice and to its posting in the sales ledger. Which assertion does this procedure mainly test?
- A Completeness of revenue
- B Occurrence of revenue
- C Existence of trade receivables
- D Classification of revenue
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Answer: A. The direction of testing decides the assertion (ISA 500; assertions in ISA 315 (Revised 2019)):
- Tracing from source documents (dispatch notes) to the accounting records tests completeness: every dispatch should lead to an invoice and a ledger entry. An unrecorded dispatch means understated revenue.
- Vouching from recorded entries back to supporting documents tests occurrence (transactions) or existence (balances): every recorded sale should be supported by a genuine dispatch.
Starting from a sequentially numbered dispatch file gives a complete population of goods sent out, so this procedure mainly tests the completeness of revenue.
Sample question 3 · D · Finalization and reporting
Under ISA 580, as at what date should management's written representations be dated?
- A As near as practicable to, but not after, the date of the auditor's report
- B The date on which audit fieldwork is completed at the client's premises
- C The last day of the financial period covered by the financial statements
- D Any date within 14 days after the auditor's report, provided it is before issue
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Answer: A. ISA 580 para 14: the date of the written representations shall be as near as practicable to, but not after, the date of the auditor's report on the financial statements, and they cover all financial statements and periods referred to in the report.
Because written representations are necessary audit evidence, the auditor's opinion cannot be expressed, and the report cannot be dated, before the date of the representations. Dating them close to the report date ensures they cover events up to that date, including subsequent events considered under ISA 560.
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