To help you prepare for the AUD exam, let’s review how to pass AUD on your first try and go over exam structure, content, questions, scoring, and more.

AUD CPA Exam Quick Facts

  • AUD stands for Auditing and Attestation.
  • The AUD exam covers 4 main content areas: ethics and professional responsibilities, assessing risk and developing a planned response, performing audit procedures and obtaining evidence, and developing conclusions and reports.
  • The AUD CPA exam is 4 hours long.
  • There are 72 multiple-choice questions and 8 task-based simulations on the AUD exam.
  • AUD is the only CPA exam section that tests candidates’ Evaluation skill level.
  • The AUD CPA exam pass rate is around 50%.


Stacie Tellers, CPA, studied for the AUD exam using Wiley CPA and passed on her first try!

Stacie says, “Passed Audit! Can you PLEASE let Jeanne (Prof. Yamamura) know that I passed my AUD exam with an 84 the first try?!?! Her live class last session was absolutely the reason why I passed. Thank you for offering these live classes.”

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How to Pass the AUD CPA Exam

To pass the AUD exam, you need to develop a deep understanding of the audit process and internal controls. You also need to know the principles within the proper context and be able to apply them appropriately, or you could get tripped up on this exam.

Practice quizzes, practice questions, and practice exams will be especially helpful in preparing you to pass the AUD exam.

How to pass the audit section of the CPA exam: The key to passing the AUD section shouldn’t be surprising; it’s making and sticking to a thorough study plan. So, let’s talk about the best way to study for the AUD exam.

Best Way to Study for AUD CPA Exam

The best way to study for the AUD exam is reviewing the exam content, understanding how you will be tested on it, and creating a study plan that you can commit to.

  1. Ensure you understand the audit report and internal controls.
  2. Memorize concepts within the proper context.
  3. Take practice exams and follow up on any weak areas.
  4. Time yourself and practice time management per question type and testlet.
  5. Create a CPA audit exam review sheet.
  6. Review past CPA audit exam questions and answers.
  7. Stay consistent with your study plan and don’t depend on a last-minute cram session.

Make sure you are studying exactly what you need to for the AUD exam by studying with a CPA Review Course. Most CPA exam test prep providers, like Wiley CPA, will give you a personalized study plan and access to a library of up-to-date study materials like video lessons, practice questions, and practice exams.

Study with the most popular CPA AUD Test Bank on the market with full CPA practice exams, 6,000+ sample CPA questions, and much more.


Tips for Passing Audit Section of CPA Exam

If you integrate the following tips into your AUD study plan, you are well on your way to passing.

Understand the Purpose of an Audit

Because many of the questions on the AUD exam will be influenced by context, it’s important to understand the purpose of an audit. This will help you question why things are done the way they are and give you a deeper understanding of different auditing decisions. Shadowing an auditor is a good way to grasp the purpose of an audit and what all it encompasses.

Review Types of Audit Opinions

Audits require CPAs to provide an opinion, which is why a large portion of the AUD exam will test your understanding of different audit opinions.

Important audit opinions to understand are:

  • Unmodified opinions
  • Qualified opinions
  • Disclaimers of opinion
  • Adverse opinions

Understand Situations That Require Explanatory Language

Auditors are required to add explanatory language to audit reports when certain issues arise. And you will typically see these situations tested on the AUD exam. These instances could include special risks being identified, another auditor being involved in the engagement, disclosure of a change in accounting principle, or error corrections.

Take CPA AUD Exam Practice Exams

Practice exams are essential in preparing you for the AUD exam. They will test your understanding, show you which areas you need to spend some more time on, and help you with your time management.

Mock exams that mirror the real AUD CPA exam will also help you feel more relaxed on exam day because you’ll be familiar with how the exam questions are presented.

If you’re curious what practice exams are like and wonder how you’d do on the CPA exam, sign up to take Wiley’s Free CPA Practice Exam.


Set Yourself up for Success for the CPA AUD Exam

Success is passing the AUD exam, and believe it or not, taking care of yourself makes you more likely to pass! Exercise and proper sleep have both been shown to improve your memory.

So, prioritize your basic needs as you’re going through test prep and make sure to eat well, stay hydrated, move your body throughout the day, and get enough sleep.

CPA AUD Exam Topics

There are 4 main content areas tested on the AUD exam and each subject is tested to varying degrees. The first area tests a candidate’s understanding of professional ethics and responsibilities and the AICPA Code of Professional Conduct, and the other three areas test a candidate’s ability to perform auditing procedures, attestation engagements, and accounting services and review service engagements.

Ethics, Professional Responsibilities, and General Principles

Ethics, Professional Responsibilities, and General Principles make up 15-25% of the AUD exam. According to the CPA Exam Blueprint, this area will test:

  • Ethics
  • Independence and professional conduct and concepts relating to professional skepticism and professional judgment
  • The nature and scope of an engagement, engagement terms, documentation, communication requirements, and quality control

Assessing Risk and Developing a Planned Response

Assessing Risk and Developing a Planned Response make up 20-30% of the AUD exam. According to the CPA Blueprint, this area will test:

  • Planning
  • Risk assessment
  • Design of procedures responsive to identified risks
  • Understanding of an entity, its environment (internal and external), business processes, information systems, and internal controls (manual and automated) in order to appropriately assess the risk of material misstatement due to fraud or errors and to design appropriate procedures to respond to those identified risks

Performing Further Procedures and Obtaining Evidence

Performing Further Procedures and Obtaining Evidence make up 30-40% of the AUD exam. According to the CPA Blueprint, this area will test:

  • Performance of planned engagement procedures that are responsive to identified risk
  • Concluding on the sufficiency and appropriateness of evidence obtained by performing general procedures (e.g., observation, reperformance, examination, etc.) and specific procedures (e.g., analytical procedures, external confirmation, and audit data analytics)
  • Determining operating effectiveness of internal controls
  • Responding to specific matters that require special consideration (e.g., accounting estimates, inventory, etc.)
  • Evaluating and responding to misstatements and internal control deficiencies

Forming Conclusions and Reporting

Forming Conclusions and Reporting make up 12-25% of the AUD exam. According to the CPA Blueprint, this area will test:

  • Reporting requirements for audit, attestation, and accounting and review service engagements
  • Comparative financial statements, consistency, and supplementary information
  • Special considerations when performing engagements under Government Auditing Standards

CPA Audit Exam Format

The Audit CPA exam format divides the exam questions into 5 testlets—2 MCQ testlets and 3 TBS testlets.

  • Testlet 1: 36 MCQs
  • Testlet 2: 36 MCQs
  • Testlet 3: 2 TBS
  • Testlet 4: 3 TBS
  • Testlet 5: 3 TBS

Before the fourth testlet, you get a 15-minute break that does not count towards your 4 hours of total testing time.

Be prepared for every type of question tested on the AUD exam with the most popular CPA Test Bank on the market.


CPA Audit Exam Time

The CFA Institute identifies that the exam questions are based on the Learning Outcome Statements (LOSs) at the beginning of each reading

AUD is a 4-hour exam that is divided into 5 testlets (same as BEC, FAR, and REG). In order to prepare to get through the whole exam in 4 hours, you should practice time management on specific types of questions and also per testlet.

A good way to practice time management is to time yourself on practice questions and free practice exams to see where you might need to pick up the pace.

There are 72 MCQs and 8 TBSs on the CPA AUD exam that you will need to get through within the allotted time. If you give yourself 45 minutes for each of the first two testlets (with 36 MCQs each), 35 minutes for the third testlet (with 2 TBSs), and 55 minutes for the last two testlets (with 3 TBSs each), you will get through the exam with 5 minutes to spare.

Make sure to practice timing yourself and add or subtract time to your plan based on how quickly you get through the different question types.

CPA AUD Exam Scoring

AUD, like every other section of the CPA exam, has a possible score of 0 to 99. The minimum passing score is 75.

CPA exam scores are not curved, and your score is not based on a percentage of correct answers. Instead, it is based on a weighted combination of your score on different types of questions.

For the AUD exam, 72 MCQs are weighted to make up 50% of your final score and 8 TBSs are weighted to make up the other 50%.


AUD Exam Scoring by Question Type

Question Type

Number of Questions

Percentage of Score

Multiple-Choice Questions (MCQs) 72 50%
Task-Based Simulations (TBSs) 8 50%


The CPA AUD exam tests different skill levels with the MCQ and TBS questions, and AUD is the only CPA exam that tests a candidate’s Evaluation skill level.


AUD CPA Exam Testing by Skill

Skill

Percentage

Remembering and Understanding 30% – 40%
Application 30% – 40%
Analysis 15% – 25%
Evaluation 5% – 15%


CPA Audit Exam Multiple-Choice Questions

AUD has 72 MCQs split into 2 different testlets. These are the first 2 testlets on the exam, and they have 36 MCQs each. These 72 MCQs make up 50% of your final score on the AUD exam.

For MCQs, you will be given a question in the form of a sentence or a few sentences, and you will need to choose the correct answer out of 4 preselected answer options.

For AUD MCQs specifically, make sure to read questions carefully and pay attention to details because some concepts closely resemble others and a single word in the question or in an answer choice can make a difference.

CPA Audit Exam Task-Based Simulation (TBS) Questions

There are 8 TBS questions on the AUD exam and they are split up into 3 different testlets—1 testlet with 2 TBSs (Testlet #3) and 2 testlets with 3 TBSs each (Testlet #4 and #5). These 8 TBS make up 50% of your final score on the AUD exam.

TBSs will require you to enter a numeric response as well as select an answer. Answer formats vary and can include fill-in-the-blank, matching, research, or journal entries.

TBSs provide a real-world scenario that you will have to provide a response to, usually in multiple parts. Partial credit is available on TBSs, so make sure to answer each part of the question, even if you are unsure.

Boost your review with detailed text that helps you identify and master specific topics that you may need additional reinforcement on to pass the AUD exam.


When to Take the AUD CPA Exam

Have you worked as an auditor or did you recently study auditing in school? The answer to this question will help you decide when to take the AUD exam.

AUD has the second lowest pass rate (the lowest is FAR), likely because many CPA candidates do not have a background in auditing. If you are one of those candidates who is not overly familiar with auditing, you will likely want to take FAR first to take advantage of any overlapping financial accounting content. If you do have auditing experience and feel confident in your knowledge, take AUD first for a strong start.

What Are the Average AUD Exam Pass Rates?

Over the past few years, the average pass rate for the AUD exam has hovered around 50%. In 2021 the average pass rate was 49.70%, and in 2020 and 2019 the pass rate was 52.84% and 51.01% respectively.

AUD has the second lowest pass rate of the 4 CPA exam sections, with FAR coming in last with an average pass rate of about 45%. AUD could have a relatively low pass rate because it is the only CPA exam that tests a candidate’s ability to evaluate multiple concepts at once and many candidates may also not have as much familiarity with auditing as they do concepts tested on the other 3 exams.


2019 – 2021 AUD Exam Pass Rates

Year

Cumulative Pass Rate

2021 49.70%*
2020 52.84%
2019 51.01%
*based on Q1 & Q2 of 2021


Wiley CPA Review Course

To pass the AUD exam, you will need to have quality study materials and take a lot of practice quizzes, practice exams, and practice questions. Wiley actually has the most popular CPA test bank on the market with over 12,000 CPA exam practice questions (that’s more than any other provider).

So, if you want the best practice materials on the market and you want to take the guesswork out of building your study plan, enlist the help of Wiley CPA. Wiley’s course is specifically designed to help you gain a deep understanding of the material all while fitting into your busy schedule. Time management tools that you get in your Wiley CPA course include:

  • customized exam planner
  • bite-sized lessons
  • adaptive review

These resources help you stay motivated, avoid procrastination, and save time by making your study plan manageable and efficient. So, reduce your stress and anxiety and improve your audit CPA exam experience by enlisting the help of the best CPA test prep provider on the market.

Prepare to earn your CPA licensure and pass AUD the first time with Wiley CPA.


Frequently Asked Questions (FAQs)

Here is a quick reference to short answers addressing some frequently asked questions about the AUD exam.

  • Only about half of candidates that take the AUD exam pass, so yes, it is a difficult exam with difficult questions (but still very possible to pass). AUD is the only part of the CPA exam that tests on 4 different skill levels including a candidate’s ability to evaluate a scenario using several concepts to make a decision.
  • Yes, if an AUD simulation asks for a multi-part answer, you will receive partial credit for any correct portions of your answer. So, if you’re struggling with a TBS, try to answer as many parts as you can since wrong answers are not counted against you, and you can get partial credit for correct answers.
  • Studying for roughly 110 hours is recommended by experts to adequately prepare for the AUD exam. However, everyone has different strengths and weaknesses, so you may need to adjust your study time as needed.
  • The pass rate for AUD hovers around 50%.
  • No, scoring for the AUD exam is not curved. Exam results for the AUD exam are based on a weighted combination of a candidate’s score on the multiple-choice questions (50% of the final grade) and task-based simulations (the other 50% of the final grade).
  • Grades for the AUD exam are based on a weighted combination of the test taker’s score on the CPA audit exam multiple choice questions and task-based simulations. MCQs make up 50% of the final grade for AUD, and TBSs make up the other 50%.
  • There are 80 total questions on the AUD exam. 72 questions are multiple-choice and 8 are task-based simulations. The task-based simulations are multiple-part.