CPA AUD case studies

CPA AUD · Put your knowledge to work in context.

The Uniform CPA Examination's Auditing and Attestation (AUD) section is one of the four core sections candidates must pass to become a licensed Certified Public Accountant in the United States. It is aimed at accounting graduates and professionals preparing for licensure, and it tests the judgment an entry-level auditor needs: professional ethics and responsibilities, risk assessment and planned responses, evidence-gathering procedures, and the conclusions and reports that follow. The CPA AUD case studies are 5 cases and about 3,990 words.

Revenue Recognition and Audit Evidence

You are the audit senior on the financial statement audit of TechSolutions Inc., a private company that develops customized software for clients. The company recognizes revenue using the percentage-of-completion method based on costs incurred to date relative to total estimated costs.

725 words, about 4 min 2

Auditor Independence and Non-Audit Services

You are a manager at a CPA firm, auditing the financial statements of HealthCare Providers, Inc. (HCP), a publicly traded company.

1,023 words, about 5 min 3

Audit Sampling and Misstatement Evaluation

You are auditing the accounts receivable of RetailCo, a large retailer with 5,000 customer accounts. You designed a sample of 100 accounts using probability-proportional-to-size (PPS) sampling.

597 words, about 3 min 4

Going Concern and Subsequent Events

You are the audit partner on the December 31, 20X2, financial statements of BioTech Innovations, a biotech startup that has incurred significant losses and has negative operating cash flows. The company has a loan covenant requiring a minimum cash balance of 1 million.

1,022 words, about 5 min 5

Fraud Risk and Management Override

You are the audit manager on the audit of NuTech Manufacturing, a private company. During the audit, you discover that the controller, who has been with the company for 10 years, has been processing journal entries to increase revenue at quarter-end without supporting documentation.

623 words, about 3 min