CPA Auditing and Attestation (AUD)

  • Published in: CPA

Table of Contents

AUD CPA Exam Content Overview

The AUD CPA Exam broadly focuses on topics related to auditing, attestation, and accounting ethics.

Auditing and Attestation (AUD)
AreaAllocation
Area IEthics, Professional Responsibilities and General Principles15 - 25%
Area IIAssessing Risk and Developing a Planned Response25 - 35%
Area IIIPerforming Further Procedures and Obtaining Evidence30 - 40%
Area IVForming Conclusions and Reporting10 - 20%

Ethics, Professional Responsibilities, and General Principles

  • Ethics, Independence, and Professional Conduct

  • Professional Skepticism and Judgment

    • Understanding the nature and scope of audits and audit engagements is essential, especially in government-regulated environments, such as those adhering to Government Auditing Standards.

  • Other Engagements

    • Learn about the terms and preconditions for audit engagements, requirements for engagement letters, and documentation standards.

    • Communication with management and governance about the scope and timing of an engagement is also highlighted.

Audit and Assurance Quality - Assessing Risk and Developing a Response

  • Planning an Audit Engagement

    • The AUD CPA Exam tests the ability to create an overall audit strategy and engagement plan.

    • This includes understanding both external and internal factors influencing an entity, along with assessing its control environment and business processes.

  • COSO Internal Control Framework

    • Topics include the control environment, IT general controls, entity-level controls, and the design of business processes and internal controls.

    • Additionally, you will need to understand the implications of using service organizations and the inherent limitations of controls.

  • Materiality and Misstatement

    • The exam also covers concepts of materiality for financial statements, including tolerable misstatement and performance materiality.

    • Candidates must also assess and respond to risks of material misstatement, including planning for the work of others.

Performing Audit Procedures and Obtaining Evidence

  • Data and Information Usage

    • Understand the importance of data preparation, transformation, and data reliability.

    • Candidates will also be tested on data analytics and methods for ensuring sufficient and appropriate audit evidence.

  • Audit Procedures

    • Key audit procedures include sampling techniques, tests of controls, tests of details, and analytical procedures.

    • Procedures for obtaining external confirmations and dealing with specific matters such as accounting estimates, investments, and inventory will also be assessed.

  • Internal Control Deficiencies and Misstatements

    • The exam tests understanding of misstatements, internal control deficiencies, and how to address them in audit reports.

Forming Conclusions and Reporting

  • Audit and Attestation Reporting

    • Candidates will learn to report on audit engagements, including attestation engagements such as examinations, reviews, and agreed-upon procedures.

  • Compliance and Comparative Statements

    • Reporting on compliance, comparative financial statements, and ensuring consistency between periods will also be assessed.

    • Understanding supplementary information and government auditing standards is crucial for this section.

  • Special Purpose Frameworks

    • The exam also covers reporting for engagements under special-purpose frameworks, including GAO Government Auditing Standards.

Scoring

  • Each exam section, except ISC, has scores evenly split between multiple-choice questions (MCQs) and task-based simulations (TBSs).
  • ISC is weighted 60% on MCQs and 40% on TBSs.
  • Scores range from 0 to 99, with 75 needed to pass each section.
  • Scores depend on correct answers and the difficulty of the questions.

Testing Method

  • Candidates have 4 hours to complete the entire exam, no matter the number or difficulty of questions.
  • The exam is divided into 5 testlets.
  • Breaks are allowed between testlets, but only a 15-minute break between testlets three and four pauses the timer.
  • The table below shows how each testlet is organized.
SectionTimeMCQsTBSs
Testlet 1Testlet 2Testlet 3Testlet 4Testlet 5