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 is offering 'inquiry alone' as sufficient evidence — inquiry by itself is almost never sufficient under AU-C 500. Candidates frequently miss the reliability hierarchy details: external evidence obtained directly by the auditor (e.g., bank confirmations) is MORE reliable than external evidence obtained indirectly through the client. Also, AU-C 230 requires a 60-day assembly deadline after the report release date — not 45 or 90 days — and after assembly, documentation may NOT be deleted but additions require annotation explaining why.
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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