AUD CPA Exam Guide

AUD CPA Exam Questions

AUD has two types of questions within the 5 testlets:

Multiple Choice Questions – These are one sentence to paragraph length questions with four potential answers. Of the total 72 MCQs on the AUD Exam, 12 are pretest questions and do not count toward a candidate’s score.

Task-Based Simulations – These are practical questions requiring candidates to type in answers, and may include a research question, journal entries, filling out a form with multiple questions, reconciling accounts, or filling out sections of reports. Of the 8 task-based simulations (TBSs), one is a pretest question and does not count toward a candidate’s score.

Time Allocation

Each section of the pre-exam takes 5 minutes for a total of 10 minutes before the actual exam starts.

The actual AUD Exam is four hours long with one 15-minute break built in between the first and second task-based simulation testlets. There are also two optional breaks, one after the first multiple choice testlet and one after the second multiple choice testlet, although the timer does run during these breaks.

When taking the exam, candidates should keep track of the time in relation to how many questions they have completed and how many they must finish. A good way to discover how to best allocate your time is to take a few practice exams and make mental notes on when you need to move on from certain sections of the exam in order to finish each part in time.

Candidates do not need to take the entire four hours on the exam and are not penalized for finishing early.

Content

Like all four parts of the CPA Exam, the content of the AUD Exam is unique and covers the auditing and attestation portion of the profession. Auditing is heavily dependent on evaluation, so unlike the other three exams, AUD includes an evaluation skill level.

A High-Level Overview

CPA Exam AUD questions are based on four content areas, listed below with related exam content percentages:

• Area I: Ethics, Professional Responsibilities, and General Principles 15-25%
• Area II: Assessing Risk and Developing a Planned Response 20-30%
• Area III: Performing Further Procedures and Obtaining Evidence 30-40%
• Area IV: Forming Conclusions and Reporting 15-25%

Within these content areas, different skill levels are tested, which are listed below with their exam content allocation percentage:

• Level I: Remembering and Understanding 30-40%
• Level II: Application 30-40%
• Level III: Analysis 15-25%
• Level IV: Evaluation 5-15%

More than with any other exam, AUD candidates looking to take the AUD Exam should be able to apply concepts to specific situations and evaluate the necessary steps in a process.

Candidates will likely face more application, analysis, and evaluation within the task-based simulation portions of the AUD Exam.

Area IV – Forming Conclusions and Reporting

1. Reports on auditing engagements
   • Forming an audit opinion, including modification of an auditor’s opinion
   • Form and content of an audit report, including the use of emphasis-of-matter (explanatory) paragraphs
   • Audit of internal control integrated with an audit of financial statements
2. Reports on attestation engagements
   • General standards for attestation reports
   • Agreed-upon procedures reports
   • Reporting on controls at a service organization
3. Accounting and review service engagements
   • Preparation engagements
   • Compilation reports
   • Review reports
4. Reporting on compliance
5. Other reporting considerations
   • Comparative statements and consistency between periods
   • Other information in documents with audited statements
   • Review of interim financial information
   • Supplementary information
   • Single statements
   • Special-purpose and other country frameworks
   • Letters for underwriting and filings with the SEC
   • Alerts that restrict the use of written communication
   • Additional reporting requirements under Government Accountability Office Government Auditing Standards

CPA Exam Scoring

In the AUD CPA Exam, 50% of a candidate’s score is derived from multiple choice questions while 50% is derived from task-based simulations. An exam score of 75 or more is required to pass.

Candidates should keep in mind that there are no penalties for wrong answers. A correct answer gains points, no answer gets zero points and a wrong answer gets zero points. Therefore, it is always good to guess at an answer as opposed to leaving it blank; if you get it right, you’ll receive points toward a passing score.

Multiple Choice Question Scoring

Each candidate is presented with a multiple choice testlet of ‘medium’ difficulty first. This difficulty level refers to the difficulty, on average, of the questions in the testlet. Some may be harder, some may be easier, but on average, they are of medium difficulty.

If a candidate does well on the first testlet, the second testlet will, on average, be more difficult. If a candidate does average or not well on the first testlet, the second testlet will remain at ‘medium’ difficulty.

Difficult questions are worth more than medium questions. A candidate who does well on the first testlet but struggles with the second testlet with more difficult questions is not penalized since correct answers on this testlet are worth more. Keep in mind, it is still possible to pass the exam if a candidate gets two medium testlets. If a candidate performs well on the second medium testlet, she or he can still pass the exam provided a good score is achieved on the task-based simulations.

AUD CPA Exam Tips

The AUD Exam covers a lot of information regarding auditing and attestation engagements. If you’re considering sitting for AUD in the near future, use these 6 tips to make your experience smoother.

Tip 1: Consider Taking AUD – The content in AUD and FAR build off each other, and there is considerable overlap in the material. You may get questions on AUD that relate to FAR material, and there is a possibility the simulations will ask similar questions to those on FAR. By taking AUD right after FAR, you may reduce your study time since some of the material may be familiar from studying FAR.

Tip 2: Know Your Reconciliations and Journal Entries – Like we said, AUD has material overlap with FAR. Part of an auditor’s job is to reconcile accounts and make sure they add up. Another part of his or her job is to suggest adjusting journal entries to fix any misstatements. Expect to see both topics on the exam, and make sure you’re prepared to think critically to answer the questions.

Tip 3: Take Practice Exams – This is true for all CPA Exams, but the variety of information you need to learn and the fact that they test all four levels of competency means you really need to take the time to understand how questions on the AUD Exam work. You need to learn to use judgment and evaluate what questions are asking while also keeping in mind time constraints.

Tip 4: Make Sure Your Study Materials are Up to Date – Regulations for companies are constantly changing, and as such the profession changes too. With updates come AUD Exam changes, and you’ll want to ensure you have the most accurate content for the exam you’re taking. You don’t want to get stuck with outdated study materials going into an updated exam. Surgent updates content regularly and with updates to the exam, so you’ll never miss a new topic.

Tip 5: Take AUD After Some Experience (If Possible) – AUD candidates have likely taken an auditing class in college, but especially with the AUD Exam, most of the learning happens with actual experience. If you’re planning on going into the auditing profession, consider taking the AUD Exam after you’ve worked in the field for a few months. Even better, wait until you’ve had a busy season and then take the exam. This might mean saving the AUD Exam for last, but the content is much easier to grasp after some experience.

If you’re not going into an auditing position or want to pass the exam before working, no worries; Surgent’s exam materials are comprehensive and will help you learn everything you need to know to pass the exam.

Tip 6: Find Study Materials that Help You Study More Efficiently – Candidates are often told there is a certain hour threshold that must be met before an exam can be passed. However, not everyone learns the same, and candidates often waste time trying to attain a certain number of study hours even if they’re completely ready to sit for the exam. To study more efficiently, look for a CPA Review course that is adaptive and can help you efficiently learn difficult topics. Surgent’s learning materials feature A.S.A.P. Technology, which helps students pass in half the time, and ReadySCORE which helps candidates objectively know when they’re ready to sit for the CPA Exam.