CPA Exam Prep

CPA Exam Prep for Section I: Auditing and Attestation (AUD)

The width and breadth of information you need to master in order to pass the CPA exam can seem overwhelming at first glance. Fortunately, quality CPA exam prep courses carefully break the various topics down into manageable chunks. In most cases, your CPA exam study materials will mirror the actual CPA exam. This overview provides more detail on what you can expect from the first section of the exam, Auditing and Attestation (AUD).

Ethics, Professional Responsibilities and General Principles

In this first area, you can expect questions on big picture concepts related to the nature, scope and objectives of audits. You will demonstrate your knowledge and ability to apply critical components of the AICPA Code of Professional Conduct and related regulatory agencies, and you will be asked to demonstrate your ability to identify preconditions for an engagement as well as the factors affecting the acceptance of an engagement. Finally, you will be asked to show understanding of documentation requirements and communicate your plans for an audit to key stakeholders.

Assessing Risk and Developing a Planned Response

The second area of the AUD section gets into the weeds when it comes to creating and implementing a comprehensive audit plan. You will show understanding of how an engagement strategy is developed, including the steps required to take internal and external factors into consideration. This section is devoted to ensuring that you can apply a thoughtful, step-by-step approach to examining the various controls affecting a particular organization and that you know how to identify and assess the risk of errors in financial statements.

Performing Further Procedures and Obtaining Evidence

One of the most critical issues in conducting an audit has to do with gathering and analyzing appropriate evidence using reliable, valid sampling techniques. Area III of the AUD section requires you to analyze and evaluate procedures related to evidence.

Forming Conclusions and Reporting

Once you have created and implemented your plan and gathered all the necessary documentation and evidence, it is time to formulate your conclusions and report on them to stakeholders. This section is primarily focused on checking that you have a thorough understanding of how to form logical conclusions and share them with the appropriate individuals.

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