CA Study Guide 2026
Everything you need to pass the CA exam in one place: the exam format, every topic to study, real practice questions with explanations, flashcards, and full-length practice tests. Free, no sign-up needed.
📋 CA Exam Format at a Glance
📚 CA Topics to Study (64)
✍️ Sample CA Questions & Answers
1. A self-employed individual earned $120,000 in net profit. What is the deductible portion of self-employment tax they can claim on their federal return?
Self-employed individuals may deduct 50% of self-employment tax as an above-the-line deduction on Form 1040.
2. What is the main function of an audit in tax compliance?
The main function of an audit in tax compliance is to independently verify that an organization's financial statements and tax returns accurately reflect its financial position and transactions. Auditors examine records to confirm adherence to tax laws and regulations, identifying any discrepancies or misstatements. This process helps maintain the integrity of the tax system and ensures fair contributions.
3. An auditor's independence would be considered impaired if they own which of the following interests in an audit client?
Any direct financial interest in an audit client impairs independence, regardless of the amount, under both AICPA and SEC rules.
4. Under Sarbanes-Oxley (SOX) Section 404, management is required to:
SOX Section 404 requires management to assess the design and operating effectiveness of internal controls over financial reporting and have that assessment attested by the external auditor.
5. A CPA firm discovers that a client has materially misstated revenue in previously issued financial statements. What is the firm's primary obligation?
The CPA must advise the client to restate the financials; if the client refuses, the auditor should withdraw the report and notify appropriate parties.
6. Which of the following is a characteristic of a 'relevant cost' in decision-making?
Relevant costs must be future-oriented and differ between the options being evaluated; sunk costs are irrelevant regardless of the decision.