Audit Evidence and Documentation
Section 2 is 25-35% of the AUD exam, and audit evidence questions appear in every sitting, expect 3-5 MCQs on AU-C 500 (evidence) and AU-C 230 (documentation). The #1 AICPA trap offers 'inquiry alone' as sufficient evidence, by itself, inquiry is almost never enough under AU-C 500. Candidates also miss a detail in the reliability hierarchy: external evidence the auditor gets directly (e.g., bank confirmations) is MORE reliable than external evidence that passes through the client first. Also know that AU-C 230 sets a 60-day assembly deadline after the report release date (the PCAOB deadline for issuers is 45 days, know both), and after assembly you may NOT delete documentation, while any additions must be annotated to explain why.
CPA Exam Lab is an independent study resource and is not affiliated with, endorsed by, or sponsored by the AICPA® or NASBA. Practice questions are original content created for study purposes. “CPA” is a registered trademark of the AICPA.
What AICPA wants you to know
- 1Define sufficiency and appropriateness of audit evidence
- 2Identify the seven types of audit procedures
- 3Understand the reliability hierarchy of audit evidence
- 4Explain audit documentation requirements and the assembly period
- 5Distinguish between tests of controls and substantive procedures