CPA Auditing and Attestation (AUD)

Certified Public Accountant Auditing and Attestation examination.
Audit Fundamentals & PrinciplesEthics and Professional ResponsibilitiesAudit Evidence & Documentation
Internal Controls & Risk AssessmentAudit Sampling & Analytical ProceduresAudit Reports & Opinions
Auditing Revenue CyclesTesting Inventory & Physical CountsAuditing Information Systems
Time Management for the AUD ExamMastering Multiple Choice & SimulationsActive Learning Techniques
Audit Fundamentals &...Ethics and Professio...Audit Evidence & Doc...Internal Controls & ...Audit Sampling & Ana...Audit Reports & Opin...Auditing Revenue Cyc...Testing Inventory & ...Auditing Information...Time Management for ...Mastering Multiple C...Active Learning Tech...
Basic Concepts

Audit Fundamentals & Principles

What is Auditing?

Auditing is the process of examining financial records and operations to ensure accuracy, compliance, and fairness. The main goal is to provide reasonable assurance that financial statements are free from material misstatement.

Key Principles

  • Integrity: Auditors must be honest and transparent.
  • Objectivity: Avoiding bias is crucial.
  • Professional Skepticism: Always question and verify evidence.
  • Due Care: Apply diligence and competence at all times.

Types of Audits

  • Financial Statement Audits
  • Compliance Audits
  • Operational Audits
  • Forensic Audits

The Audit Process

  1. Planning: Understand the client and risks.
  2. Fieldwork: Gather evidence and test controls.
  3. Reporting: Share findings and opinions.

Why Auditing Matters

Auditing builds trust in financial markets, helps organizations improve, and protects the public interest.

Examples

  • A CPA reviews a company's year-end financials to confirm accuracy.

  • An auditor checks if a nonprofit used grant funds as intended.

In a Nutshell

Auditing examines records to provide assurance on financial statements.

Key Terms

Professional Skepticism
An attitude of questioning and critical assessment during an audit.
Material Misstatement
An error or omission significant enough to impact financial decisions.
Due Care
Applying necessary diligence and skill in all audit activities.
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Ethics and Professional Responsibilities
CPA Auditing and Attestation (AUD) Content & Lessons - Comprehensive Study Guide | Practice Hub