The Certified Public Accountant (CPA) Auditing and Attestation (AUD) exam is critical to the CPA certification process. This exam assesses a candidate’s knowledge and skills in auditing, attestation, and related services. Aspiring CPAs must demonstrate their ability to conduct audits, review financial statements, and perform other attest engagements.
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The Acadlly Exams platform offers comprehensive preparation resources, including practice questions and detailed answers, to help candidates succeed in the AUD exam.
Overview of the AUD Exam
Table of Contents
The AUD exam consists of four testlets, including multiple-choice questions (MCQs) and task-based simulations (TBSs). The content is divided into the following areas:
1. Ethics, Professional Responsibilities, and General Principles (15-25%)
2. Assessing Risk and Developing a Planned Response (20-30%)
3. Performing Further Procedures and Obtaining Evidence (30-40%)
4. Forming Conclusions and Reporting (15-25%)
Sample Questions and Answers
Here are some sample questions from the AUD section on the Acadlly Exams platform, along with detailed answers to help you understand the concepts and reasoning behind each answer.
Question 1: Ethics and Professional Responsibilities
Q: An auditor is planning an audit engagement for a new client. Which of the following actions should the auditor take first?
a) Perform risk assessment procedures.
b) Obtain an understanding of the client’s internal control.
c) Verify the client’s compliance with regulatory requirements.
d) Evaluate the auditor’s independence with respect to the client.
A: d) Evaluate the auditor’s independence with respect to the client.
Explanation: Before accepting a new client, the auditor must ensure that they are independent. Independence is fundamental to the audit profession and is required to maintain objectivity and impartiality. Without independence, the auditor’s opinions and findings could be compromised.
Question 2: Assessing Risk
Q: During an audit of a nonissuer, the auditor identifies a significant risk of material misstatement due to fraud. Which of the following procedures is the auditor most likely to perform in response?
a) Increase the sample size of substantive tests.
b) Perform additional tests of controls.
c) Conduct interviews with key personnel.
d) Request that management sign a fraud acknowledgement statement.
A: c) Conduct interviews with key personnel.
Explanation: When a significant risk of material misstatement due to fraud is identified, auditors often conduct interviews with key personnel to gather more information and understand the circumstances that could lead to fraud. This helps in designing appropriate responses to the identified risks.
Question 3: Obtaining Evidence
Q: An auditor is reviewing the accounts receivable of a client and selects a sample of customer balances to confirm. Which assertion is primarily being tested with this procedure?
a) Completeness
b) Rights and obligations
c) Valuation
d) Existence
A: d) Existence
Explanation: Confirming accounts receivable primarily tests the existence assertion. The auditor seeks to verify that the receivables recorded in the financial statements actually exist and are not fictitious.
Question 4: Forming Conclusions and Reporting
Q: An auditor concludes that there is substantial doubt about an entity’s ability to continue as a going concern. What type of opinion should the auditor issue if the financial statements adequately disclose this situation?
a) Unqualified opinion with an emphasis-of-matter paragraph
b) Qualified opinion
c) Adverse opinion
d) Disclaimer of opinion
A: a) Unqualified opinion with an emphasis-of-matter paragraph
Explanation: If the financial statements adequately disclose the substantial doubt about the entity’s ability to continue as a going concern, the auditor should issue an unqualified opinion with an emphasis-of-matter paragraph. This highlights the going concern issue without qualifying the opinion.
Frequently Asked Questions (FAQs)
Q1: How long is the AUD exam?
A: The AUD exam is four hours long, consisting of multiple-choice questions and task-based simulations.
Q2: How many questions are on the AUD exam?
A: The AUD exam typically includes 72 multiple-choice questions and 8 task-based simulations.
Q3: What is the passing score for the AUD exam?
A: The passing score for the AUD exam is 75 on a scale of 0 to 99.
Q4: How often can I take the AUD exam if I do not pass?
A: You can retake the AUD exam during any available testing window, which is quarterly. However, you must wait for the next testing window to retake the exam.
Q5: What resources does Acadlly Exams provide for AUD exam preparation?
A: Acadlly Exams offers a variety of resources, including practice questions, detailed answers, simulation exercises, and study guides specifically tailored for the AUD exam.
Q6: How can I access the AUD practice questions on Acadlly Exams?
A: You can access the AUD practice questions by subscribing to the Acadlly Exams platform and navigating to the AUD exam section. Practice questions and other resources will be available for your use.
Preparing for the CPA Auditing and Attestation exam requires dedication and thorough preparation. By utilizing the resources available on Acadlly Exams, candidates can build their knowledge and confidence, increasing their chances of passing the AUD exam and advancing their accounting careers.
