CPA Exam: Audit And Attestation

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The qualification for Certified Public Accountant (CPA) should not be a surprise as examiners are looking for the classic job of public accountants who are advanced in working knowledge for audit and attestation.

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What is Covered in AUD?

Below is the examination specification that was released:

  • Understanding the assignment and engagement acceptance (12%-16%).
  • Understanding the environment of the entity (16%-20%).
  • Evaluating evidence and performing the audit procedures (16%-20%).
  • Evaluating audit reports, findings, and communications (16%-20%).
  • Professional responsibilities (16%-20%).
  • Review services engagements and accounting (12%-16%).

Structure and format of AUD Exam

There are three testlets in this 4-hour exam each contain 30 multiple-choice questions and seven TBS questions (task-based simulations) in the fourth testlet. 50-60% of the test score depends on multiple-choice questions and TBS represent the rest of the score repents. The MCQs are adaptive but test-base simulations are not. CPA exam prep guides are available online with more details.

Pass Rate Trend And History

The pass rate for the AUD section in the CPA exam is almost the same as compares to rest. In recent years it hovers 50%. Whereas, over the years, the pass rate for the CPA exam has been increasing steadily.

Overview and Insights of AUD Exam

The Auditing and Attestation section covers the whole auditing process which includes generally accepted audited standards, auditing procedures, AICPA code of Professional Conduct, and the standards regarding attest engagements. Remember that the Auditing and Attestation section tests that how the CPA applicant put on the knowledge of audit and attestation while performing the specific task and solving problems and not how good he/she is in memorizing the auditing concepts.

Content Of AUD Exam

Ethics, general principles, professional responsibilities (15-25%).

  • Scope, nature, and terms of engagement of audit and non-audit engagements.
  • Ethics, professional conduct, and independence.
  • Requirements for the engagements documentation.
  • Communication with the management and ones charged with governance.
  • Communication with the component auditors and other parties
  • The quality control system of the firm, including the control at the engagement level

Risk assessment and developing the planned processes (20-30%)

  • Planning the Engagement
  • Understanding the environment of the entity
  • Understanding the internal control of the entity
  • Materiality
  • Risk assessment due to fraud
  • Particular audit risk areas
  • Identification and assessment of the risk of planning further procedures and material misstatement responsive to the risk identified.

Obtaining evidence and performing further procedures (30-40%)

  • Written representations.
  • Appropriate and sufficient understanding of audit evidence
  • Carrying out some specific procedures to get evidence
  • Sampling techniques
  • Individual attention required in specific matters

Reporting and forming conclusions (15-25%)

  • Reports on attestation engagements and auditing engagements
  • Reporting on the compliance
  • Other considerations of reporting
  • Review service engagements and accounting

Auditing Standards and Engagements (70-76%)

  • Engagement understanding and acceptance
  • Understanding of entity, its content, and internal control
  • Evidence evaluation and audit procedures
  • Audit opinions and reports.

Professional responsibilities (16-20%)

  • Independence and ethics

Accounting and review services (12-16%)

  • Reports, evidence, and engagement planning.

AUD Exam Scoring

In the CPA exam, the AUD section covers the whole auditing process and requires very strong technical knowledge and skills of the auditing process. Practice the AUD skills get more information at To pass the AUD exam, an overall 75 or higher scale score is needed.

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