What does audit procedures mean on the CPA exam?
Audit procedures. The specific work performed: inspection, observation, inquiry, confirmation, recalculation, reperformance and analytical procedures.
Defined against AU-C 500.A43.
Which CPA exam sections use audit procedures?
Audit procedures appears in the AUD section of the CPA exam.
Other terms defined against AU-C 500
- audit evidence: Everything the auditor uses to reach a conclusion, including the accounting records and anything corroborating them.
- competence, capabilities, and objectivity: The three things evaluated before relying on anyone else's work: whether they have the skill, whether they have the resources to apply it, and whether they are free of pressure to reach a particular answer.
- sufficient appropriate audit evidence: Enough evidence, of the appropriate kind.
Related terms
- risk assessment procedures: The audit procedures designed and performed to identify and assess the risks of material misstatement at the financial statement and assertion levels.
- analytical procedures: Evaluations of financial information by studying plausible relationships among financial and nonfinancial data.
- further audit procedures: The work done in response to assessed risk: tests of controls and substantive procedures.
- agreed-upon procedures: An engagement where the practitioner performs procedures the parties have specified and reports the findings, expressing no opinion.
- substantive procedures: Work aimed directly at detecting misstatement in a balance or disclosure, as opposed to testing whether a control operated.
- due diligence: The specific inquiry, documentation and record-keeping a preparer must perform before claiming certain credits or head-of-household status.