Introduction
The Auditing and Attestation (AUD) section of the Uniform CPA Examination (CPA) tests the knowledge and skills that a newly licensed CPA must demonstrate when performing:
- Audits of the issuer and non-issuer entities (including governmental entities, not-for-profit entities, employee benefit plans, and entities receiving federal grants).
- Attestation engagements for issuer and non-issuer entities (including examinations, reviews, and agreed-upon procedures engagements).
- Preparation, compilation, and review engagements for non-issuer entities and reviews of interim financial information for issuer entities.
In this blog, we shall look at the Auditing and Attestation (AUD) section of the CPA exam in detail, with respect to the changes that will take place in CPA Evolution 2024.
Exam Structure
The AUD section is designed to have the following exam time and question types on the US CPA Exam:
Section | Section Time | Multiple-choice questions (MCQs) | Task-based simulations (TBSs) | Written Communication |
AUD | 4 hours | 72 | 8 | – |
The scoring weight of multiple-choice questions (MCQs), task-based simulations (TBSs), and written communication for AUD section on the US CPA Exam is as follows:
Score Weightage | |||
Section | Multiple-choice questions (MCQs) | Task-based simulations (TBSs) | Written Communication |
AUD | 50% | 50% | – |
The following table summarizes the content areas and the allocation of the content tested in the AUD section of the Exam:
Content area | Topics | Allocation |
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% |
Types of CPA AUD questions
In the AUD section of the CPA exam, most testlets consist of two types of questions: operational and pre-test. Operational questions contribute to your overall exam score, while pre-test questions do not.
However, there is no way to distinguish between the two question types, so it is not worth spending valuable exam time deciding whether to skip a question or not.
Pass Rates for the AUD Section of the CPA Exam
The AUD section of the CPA Exam is considered to be one of the most challenging sections, with a pass rate of around 48% in 2021. In comparison, FAR had the lowest pass rate of nearly 45%, while BEC had the highest pass rate of 62% in the same year.
Although the pass rates tend to vary from year to year, the historical trend suggests that AUD is consistently challenging.
However, it is important to note that statistics only provide a general idea of the pass rates and cannot predict individual performance. A 50% pass rate does not mean that your chances of passing are limited to 50%.
By dedicating yourself to studying and practicing, you can significantly improve your chances of passing the exam.
Efficient Time Management for the AUD CPA Exam
The AUD section of the CPA Exam has a testing duration of four hours, similar to other sections of the exam. To manage your time effectively during the exam, it is recommended to allocate a specific amount of time for each question based on its type:
MCQs
1.25 minutes each
TBSs
18 minutes each
To manage your time efficiently during the AUD section of the CPA Exam, it is advisable to adopt a structured time management approach such as the following:
Practice is key to answering AUD questions quickly since they require a conceptual understanding. Answer easier questions quickly, guess difficult questions after two minutes, and work at a pace that allows you to read and respond to every question.
You have six minutes to use at your discretion, but once you submit a testlet, you can’t revisit it.
Tips for Passing the AUD Section of the CPA Exam
1. Spend more time practicing questions, than reading/ learning theory. The MCQs are generally more practical in nature than theoretical.
2. Most people find out why an answer is not right. However, always identify the cause of your correct answer, as well. Sometimes you may get the answer right by chance.
Ensure the logic applied by you is sound. Reading the solution explanation is highly important.
3. Never correct your errors on the same day, this way you end up learning the questions. That is not helpful in the actual exam.
4. It is not unusual to be confused in two final options in AUD MCQs. However, you must always identify and select the best fit. If you can think of an exception, you are probably choosing the wrong option.
5. Task-Based Simulations (TBSs) should be attempted after you have a stronghold in the MCQ section. Since simulations do not always conform to chapter boundaries and can test concepts from various disciplines.
However, if you are good with the entire MCQs section, you will not find the TBSs as difficult, they will feel like long-form MCQs.
Why choose Miles to earn your CPA?
Miles is the largest CPA training institutes in India. It offers the following:
- 200+ hours of CPA classes and classroom training over 28 Sundays. We provide Online Video lectures for those who need flexibility in their exam preparation or in locations where Miles classroom sessions are not conducted.
- Miles CPA Review has original McGraw Hill books authored by Varun Jain. They have exam-focused notes that include multiple aids for conceptual understanding and memory.
- Miles Online Test Bank Access for online practice questions and mock exams (8000+ MCQs and 500+ Simulations including enhanced Simulations and DRS).
- Logistical support – Exam Eligibility, Foreign Credential Evaluation, NTS, UAE /US travel.
- CPA licensure assistance.
If you’re interested in pursuing CPA licensure with Miles Education, here are the steps to follow.
If you’re interested in pursuing CPA licensure with Miles Education, here are the steps to follow.
- First, start your CPA course with Miles in April 2023.
- Then, in June 2023, you can appear for the BEC exam.
- In October 2023, you can take the AUD exam.
- Followed by the FAR exam in March 2024.
- Finally, in July 2024, you can appear for the REG exam.
Once you’ve completed all the necessary exams and met the licensure requirements, you can earn your CPA License and open doors to a world of opportunities in the field of accounting and finance.
9 thoughts on “CPA AUD Exam: A Comprehensive Guide”
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Very interesting content. Too insightful 🙂
This blog helps to know about Auditing and Attesting as important subject of CPA and it involves tips that must be kept in mind for preparing AUD exam , it involves exam time, question types, MCQ, allocation of content texted in AUD exam to know a glance towards AUD exam in details to students .
Much needed information about this section of the CPA exam! I like how the blog easily explains all the nuances involved.
Much needed blog, thanks for an insightful knowledge about auditing which is one of the important topic in CPA.
Hope this tips and tricks help with my CPA examination.
Thankyou
Thank you for the statistical knowledge. I am more confident about my choice now.
That provides a crisp format for aspirants willing to go in the auditing line. Thanks 👌
This really helped me out in clearing my doubts and coming on to the final conclusion that will mould my future in a better way
As this is very beneficial for the candidates who want to go in the auditing field…..
This really helped me to clear my doubts