Saturday, October 31

Importance of AUDIT section in the CPA exam

One must have to pass the uniform CPA exam to become a licensed Certified Public Accountant (CPA). We often hear that there’s a chance of conducting the CPA exam in India. If you are willing to sit for the exam, the first step is to know the exam pattern of the CPA.

Let’s know about the CPA exam sections.

There are four sections in the CPA exam:

  1. Auditing and Attestation (AUD)
  2. Regulation (REG)
  3. Financial Accounting and Reporting (FAR)
  4. Business Environment and Concepts (BEC)

Get to know the sections individually:

Auditing and Attestation (AUD):

The AUD section covers all the assurance and audit services that are performed in public accounting. It tests the knowledge of AICPA professional conduct code, compilations, attest engagements, reviews, and audit process. 

Regulation (REG):

The REG section doesn’t cover the accounting topics explicitly. It focuses more on business law, individual taxation, and ethics.

Financial Accounting and Reporting (FAR):

FAR is considered as the hardest section in the CPA exam because it covers most of the information from outside topics & tackles with reporting and financial accounting. Also, it includes financial statement preparation, FASB framework, IFRS rules, and US GAAP rules.

Business Environment and Concepts (BEC):

BEC is a comprehensive section that covers micro/macroeconomics, information systems, management, and cost accounting. 

Importance of Auditing & Attestation (AUDIT) section in the CPA exam:

The CPA exam consists of a section called AUDIT (Auditing and Attestation). It’s the longest exam section, where the candidate must possess vast conceptual knowledge and apply it in the client situations. Out of the four exam sections, AUDIT tests the practice of public accounting.

Let’s discuss more & get ready to think about this longest exam section.

AUDIT – The time challenge:

The candidates who are going to write the AUDIT exam section must come to the Prometric test center at least thirty minutes ahead. Such a frame of a long time makes endurance a time management challenge. Pace yourself by using fifty minutes for each testlets. Make use of allotted time and must remember about taking the time to sit back and reflect. It’s necessary to take a break of 5 minutes between the testlets.

Tricky multiple-choice:

One might think, are the multiple-choice questions of the CPA exam tricky? Yes, of course, many questions are highly thought-provoking. The AUDIT exam section helps to test our real-time experience to apply to recite knowledge. It’s a mandatory process for most of the CPA candidates who do not have good experience as auditors in the public accounting firms. In the best possible ways, the CPA aspirant may possess more than two years of experience even at the internship.

People have the chance to visualize the documentation of audit documentation and report types. Also, it helps significantly if the AUDIT exam is not taken until you get real-time experience.  

Key to pass AUDIT section:

To complete the AUDIT exam section successfully, the candidate must apply his knowledge rather than repeating his understanding. As we know, the multiple-choice questions part is the hardest part of the section out of all the four sections. 

The difficulty arises because of the following three reasons:

  • Except for the computation analytical procedure ratios, most of the CPA candidates are not using the algorithms, and they depend on the words to answer the questions.
  • As we are aware, few AUDIT questions have two correct answers. Also, in those, the examiners ask the candidates to find the best answer. That shifting for the best solution is very challenging. 
  • The candidates have to know the definitions of the phrases and numerous words to apply in real-time situations.

Many of the AUDIT questions are not numerical. It’s a fact in knowing to change study habits with different techniques and have to find the best answer among them. Most of the candidates who are sitting for the CPA exam are not aware of how the auditors work. Then how can they compete for this kind of deficiency?

The content in the AUD section includes on below priority:

  • 20 to 30% – Improving a Planned Response and Assessing Risk
  • 15 to 25% – Ethics, General Principles and Professional Responsibilities
  • 15 to 25% – Reporting and Forming Conclusions
  • 30 to 40% – Obtaining Evidence and Performing Further Procedures

AUDIT – The research tab:

It’s essential to save the simulation testlet research section for last. Pace yourself by using the tools of time management. A sample of simulation provides a good experience for the CPA aspirants to search the summary of contents. Let’s discuss three choices to earn more points:

  • Move on after exiting the testlet four by leaving the research section as blank.
  • Have to spend more time to find the correct answer.
  • Paste a semi-relevant paragraph, if you are not finding the correct one.


Hope you have understood the sections in the CPA exam. Among all the sections the AUDIT section is considered as the most extended CPA exam section. Hope you have learned the art of writing the AUDIT (Auditing & Attestation) from the above article. Happy Learning!

Author Bio:

Anji Velagana is the Content Strategist at Simandhar Education and has 2 years of experience in content writing and blogging. He loves pursuing excellence through writing and has a passion for technology & educational content. Contact him on LinkedIn.

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