Section 2: 25–35%A8

Audit Evidence and Documentation

Exam insight

Audit evidence appears in every sitting. Inside Section 2 (25-35% of the exam), expect 3-5 MCQs on AU-C 500 (evidence) and AU-C 230 (documentation). A favorite distractor offers 'inquiry alone' as sufficient evidence, but on its own 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.

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

Patterns in this topic

The exam re-skins the same archetypes. Recognize these here, then drill them in the Pattern Lab.

The Evidence HierarchyThe best evidence is external, direct, and auditor-obtained, and quantity cannot fix poor quality.The Confirmation PlayPositive or negative depends on risk and balance size, and non-responses trigger a fixed next step.The Substantive DesignMatch the procedure to the risk: significant risks need tests of details, not analytics alone.

Exam tip

Study smarter: before you expand each card, cover the screen and try to recall what the concept means from its title alone. Retrieving it from memory builds the recall the exam actually tests, and it beats re-reading.