Section 3: 30–40%A10
Estimates, Related Parties, Going Concern, and Subsequent Events
Exam Insight
These four topics involve significant auditor judgment and are heavily tested. The exam tests whether candidates understand the auditor's responsibility for evaluating estimates, identifying related parties, assessing going concern, and handling subsequent events.
What AICPA Wants You to Know
- 1Evaluate management's accounting estimates for reasonableness
- 2Identify related party transactions and the auditor's responsibilities
- 3Apply the going concern assessment framework
- 4Distinguish between Type I and Type II subsequent events
- 5Understand the reporting implications of going concern doubts