2025 CPA Exam – AUD (Section 1) Auditing & Attestation Ethics, Audit Risk,
and Engagement Responsibilities Verified Questions & Notes AICPA Aligned
Becker-Based
Statements |on |Auditing |Standards |(SAS) |- |answersstandard-setting |body: |AICPA |auditing |standards |
board
SAS |provide |GAAS |for |audits |of |non |issuers |(private)
& |provides |guidance |for |other |services, |such |as |review |of |interim |financials |and |letters |to |
underwriters
PCAOB |Auditing |Standards |- |answersstandard-setting |body: |PCAOB |accounting |oversight |board
PCAOB |AS |provide |GAAS |for |the |audits |of |issuers |(public) |& |provides |guidance |for |other |services, |
such |as |review |of |interim |financials |and |letters |to |underwriters
Generally |Accepted |Government |Auditing |Standards |(GAGAS) |- |answersstandard-setting |body: |
governmental |accountability |office |(GAO)
GAGAS |provide |guidance |for |audits |of |government |orgs, |programs, |activities, |and |of |entities |that |
receive |government |funds
Statements |on |Standards |for |Attestation |Engagements |(SSAE) |- |answersstandard-setting |body: |AICPA
applies |to: |examination, |a |review, |or |agreed-upon |procedures |report |on |a |subject |matter, |or |an |
assertion |about |a |subject |matter, |that |is |the |responsibility |of |another |party
Statements |on |Standards |for |Accounting |and |Review |Services |(SSARS) |- |answersstandard-setting |body:
|AICPA |accounting |and |review |services |committee
provide |guidance |for |UNaudited |financials |of |non |issuers |(private)
Code |of |Professional |Conduct |- |answersstandard-setting |body: |AICPA
provides |MEMBERS |with |guidelines |for |BEHAVIOR |in |the |conduct |of |their |professional |affairs.
also |provides |assurance |to |the |public |that |the |profession |intends |to |maintain |high |standards |and |to |
enforce |compliance |with |these |standards |by |its |members
applies |to: |members |of |the |AICPA
Statements |on |Quality |Control |Standards |(SQCS) |- |answersstandard-setting |body: |AICPA
provides |guidance |to |CPA |FIRMS |about |a |quality |control |system. |
applies |to: |CPA |firms |providing |auditing, |attestation, |and |accounting |and |review |services
,quality |control |system |- |answersconsists |of |policies |and |procedures |deisgned, |implemented, |and |
maintained |to |ensure |that |the |firm |complies |with |professional |standards |and |appropriate |legal |and |
regulatory |requirements, |and |that |any |reports |issued |are |appropriate |in |the |circumstances
The |GAAS |Hierarchy |(most |authoritative |to |least) |- |answersSAS |(nonissuers) |& |PCAOB |AS |(issuers)
Interpretive |Publications
Other |Auditing |Publications
SAS |(non |issuers) |& |PCAOB |AS |(issuers) |- |answersauditor |should |use |professional |judgement |& |be |
prepared |to |justify |any |departures |from |presumptively |mandatory |requirements
SAS |(non |issuers) |& |PCAOB |AS |(issuers) |- |LANGUAGE |- |answersclarifies |the |auditor's |level |of |
responsibility
- |"must" |or |"is |required" |indicates |and |unconditional |requirement, |which |must |be |followed |in |all |
cases |in |which |the |requirement |is |relevant
- |"should" |indicates |a |presumptively |mandatory |requirement, |which |must |be |followed |in |all |cases |
where |relevant |except |in |rare |circumstances |when |departure |is |permitted |if |justified
- |"may," |"might," |and |"could" |indicate |explanatory |material |that |does |not |impose |a |professional |
requirement |for |performance
Interpretive |Publications |- |answersare |recommendations |regarding |how |SASs |should |be |applied |in |
specific |situations. |
- |not |considered |to |be |auditing |standards
- |ex: |auditing |interpretations |of |GAAS, |exhibits |to |GAAS, |auditing |guidance |provided |in |AICPA |Audit |
and |Accounting |Guides, |& |AICPA |Auditing |Statements |of |Position |(SOP)
Other |Auditing |Publications |- |answershave |NO |authoritative |status |but |may |be |helpful |to |the |auditor
- |ex: |Auditing |articles |in |the |Journal |of |Accountancy |(or |other |professional |journal), |auditing |articles |in
|the |AICPA |CPA |Letter, |continuing |professional |education |materials, |textbooks, |and |other |auditing |
publications
purpose |of |an |audit |- |answersto |provide |financial |statement |users |with |an |opinion |on |whether |the |
financial |statements |are |presented |fairly, |in |all |material |respects, |in |accordance |with |the |applicable |
financial |reporting |framework |(GAAP, |IFRS, |& |special |purpose |frameworks)
Management |and |those |charged |with |governance |are |responsible |for: |- |answers1. |the |preparation |
and |fair |presentation |of |the |FS |in |accordance |w |the |applicable |financial |reporting |framework
2. |the |design, |implementation, |and |maintenance |of |internal |control |relevant |to |the |preparation |and |
fair |presentation |of |FS |that |are |free |of |material |misstatement |due |to |error |or |fraud; |and
3. |providing |the |auditor |with |access |to |information |and |persons |within |the |entity |needed |to |complete
|the |audit
, the |preparation |and |fair |presentation |of |the |FS |requires: |- |answers1. |identification |of |the |applicable |
financial |reporting |framework
2. |preparation |and |fair |presentation |of |the |FS |in |accordance |w |the |framework; |and
3. |inclusion |of |an |adequate |description |of |the |framework |in |the |FS
Auditor |Responsibilities |- |answersthe |auditor |is |responsible |for |expressing |an |opinion |on |the |FS |based
|on |the |audit |as |well |as:
1. |maintaining |professional |skepticism
2. |complying |with |relevant |ethical |requirements
3. |exercising |professional |judgment |throughout |the |planning |and |performance |of |the |audit
4. |obtaining |sufficient |appropriate |audit |evidence; |and
5. |complying |with |GAAS
professional |skepticism |- |answersrecognition |that |circumstances |may |exist |that |cause |the |financial |
statements |to |be |materially |misstated
auditors |should |be |alert |for:
-audit |evidence |that |contradicts |other |audit |evidence |obtained
-info |that |calls |into |question |the |reliability |of |documents |and |responses |to |inquiries |that |may |be |used
|as |audit |evidence
-conditions |that |indicate |possible |fraud
-circumstances |that |suggest |the |need |for |audit |procedures |in |addition |to |those |required |by |GAAS
environment |that |creates |potential |fraud |- |answerspressure
opportunity
rationalization
Ethical |Requirements |- |answersmust |be |independent |in |both |fact |and |appearance
-ethical |requirements |include |the |AICPA |Code |of |Professional |Conduct |and |the |rules |of |the |state |
boards |of |accountancy |and |applicable |regulatory |agencies |that |are |more |restrictive
Professional |Judgment |- |answersshould |exercise |PJ |in |planning |& |performing |the |audit
professional |judgment |is |necessary |when |making |decisions |about:
-materiality
-audit |risk
and Engagement Responsibilities Verified Questions & Notes AICPA Aligned
Becker-Based
Statements |on |Auditing |Standards |(SAS) |- |answersstandard-setting |body: |AICPA |auditing |standards |
board
SAS |provide |GAAS |for |audits |of |non |issuers |(private)
& |provides |guidance |for |other |services, |such |as |review |of |interim |financials |and |letters |to |
underwriters
PCAOB |Auditing |Standards |- |answersstandard-setting |body: |PCAOB |accounting |oversight |board
PCAOB |AS |provide |GAAS |for |the |audits |of |issuers |(public) |& |provides |guidance |for |other |services, |
such |as |review |of |interim |financials |and |letters |to |underwriters
Generally |Accepted |Government |Auditing |Standards |(GAGAS) |- |answersstandard-setting |body: |
governmental |accountability |office |(GAO)
GAGAS |provide |guidance |for |audits |of |government |orgs, |programs, |activities, |and |of |entities |that |
receive |government |funds
Statements |on |Standards |for |Attestation |Engagements |(SSAE) |- |answersstandard-setting |body: |AICPA
applies |to: |examination, |a |review, |or |agreed-upon |procedures |report |on |a |subject |matter, |or |an |
assertion |about |a |subject |matter, |that |is |the |responsibility |of |another |party
Statements |on |Standards |for |Accounting |and |Review |Services |(SSARS) |- |answersstandard-setting |body:
|AICPA |accounting |and |review |services |committee
provide |guidance |for |UNaudited |financials |of |non |issuers |(private)
Code |of |Professional |Conduct |- |answersstandard-setting |body: |AICPA
provides |MEMBERS |with |guidelines |for |BEHAVIOR |in |the |conduct |of |their |professional |affairs.
also |provides |assurance |to |the |public |that |the |profession |intends |to |maintain |high |standards |and |to |
enforce |compliance |with |these |standards |by |its |members
applies |to: |members |of |the |AICPA
Statements |on |Quality |Control |Standards |(SQCS) |- |answersstandard-setting |body: |AICPA
provides |guidance |to |CPA |FIRMS |about |a |quality |control |system. |
applies |to: |CPA |firms |providing |auditing, |attestation, |and |accounting |and |review |services
,quality |control |system |- |answersconsists |of |policies |and |procedures |deisgned, |implemented, |and |
maintained |to |ensure |that |the |firm |complies |with |professional |standards |and |appropriate |legal |and |
regulatory |requirements, |and |that |any |reports |issued |are |appropriate |in |the |circumstances
The |GAAS |Hierarchy |(most |authoritative |to |least) |- |answersSAS |(nonissuers) |& |PCAOB |AS |(issuers)
Interpretive |Publications
Other |Auditing |Publications
SAS |(non |issuers) |& |PCAOB |AS |(issuers) |- |answersauditor |should |use |professional |judgement |& |be |
prepared |to |justify |any |departures |from |presumptively |mandatory |requirements
SAS |(non |issuers) |& |PCAOB |AS |(issuers) |- |LANGUAGE |- |answersclarifies |the |auditor's |level |of |
responsibility
- |"must" |or |"is |required" |indicates |and |unconditional |requirement, |which |must |be |followed |in |all |
cases |in |which |the |requirement |is |relevant
- |"should" |indicates |a |presumptively |mandatory |requirement, |which |must |be |followed |in |all |cases |
where |relevant |except |in |rare |circumstances |when |departure |is |permitted |if |justified
- |"may," |"might," |and |"could" |indicate |explanatory |material |that |does |not |impose |a |professional |
requirement |for |performance
Interpretive |Publications |- |answersare |recommendations |regarding |how |SASs |should |be |applied |in |
specific |situations. |
- |not |considered |to |be |auditing |standards
- |ex: |auditing |interpretations |of |GAAS, |exhibits |to |GAAS, |auditing |guidance |provided |in |AICPA |Audit |
and |Accounting |Guides, |& |AICPA |Auditing |Statements |of |Position |(SOP)
Other |Auditing |Publications |- |answershave |NO |authoritative |status |but |may |be |helpful |to |the |auditor
- |ex: |Auditing |articles |in |the |Journal |of |Accountancy |(or |other |professional |journal), |auditing |articles |in
|the |AICPA |CPA |Letter, |continuing |professional |education |materials, |textbooks, |and |other |auditing |
publications
purpose |of |an |audit |- |answersto |provide |financial |statement |users |with |an |opinion |on |whether |the |
financial |statements |are |presented |fairly, |in |all |material |respects, |in |accordance |with |the |applicable |
financial |reporting |framework |(GAAP, |IFRS, |& |special |purpose |frameworks)
Management |and |those |charged |with |governance |are |responsible |for: |- |answers1. |the |preparation |
and |fair |presentation |of |the |FS |in |accordance |w |the |applicable |financial |reporting |framework
2. |the |design, |implementation, |and |maintenance |of |internal |control |relevant |to |the |preparation |and |
fair |presentation |of |FS |that |are |free |of |material |misstatement |due |to |error |or |fraud; |and
3. |providing |the |auditor |with |access |to |information |and |persons |within |the |entity |needed |to |complete
|the |audit
, the |preparation |and |fair |presentation |of |the |FS |requires: |- |answers1. |identification |of |the |applicable |
financial |reporting |framework
2. |preparation |and |fair |presentation |of |the |FS |in |accordance |w |the |framework; |and
3. |inclusion |of |an |adequate |description |of |the |framework |in |the |FS
Auditor |Responsibilities |- |answersthe |auditor |is |responsible |for |expressing |an |opinion |on |the |FS |based
|on |the |audit |as |well |as:
1. |maintaining |professional |skepticism
2. |complying |with |relevant |ethical |requirements
3. |exercising |professional |judgment |throughout |the |planning |and |performance |of |the |audit
4. |obtaining |sufficient |appropriate |audit |evidence; |and
5. |complying |with |GAAS
professional |skepticism |- |answersrecognition |that |circumstances |may |exist |that |cause |the |financial |
statements |to |be |materially |misstated
auditors |should |be |alert |for:
-audit |evidence |that |contradicts |other |audit |evidence |obtained
-info |that |calls |into |question |the |reliability |of |documents |and |responses |to |inquiries |that |may |be |used
|as |audit |evidence
-conditions |that |indicate |possible |fraud
-circumstances |that |suggest |the |need |for |audit |procedures |in |addition |to |those |required |by |GAAS
environment |that |creates |potential |fraud |- |answerspressure
opportunity
rationalization
Ethical |Requirements |- |answersmust |be |independent |in |both |fact |and |appearance
-ethical |requirements |include |the |AICPA |Code |of |Professional |Conduct |and |the |rules |of |the |state |
boards |of |accountancy |and |applicable |regulatory |agencies |that |are |more |restrictive
Professional |Judgment |- |answersshould |exercise |PJ |in |planning |& |performing |the |audit
professional |judgment |is |necessary |when |making |decisions |about:
-materiality
-audit |risk
