What does competence, capabilities, and objectivity mean on the CPA exam?
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.
Defined against AU-C 500.08.
Which CPA exam sections use competence, capabilities, and objectivity?
Competence, capabilities, and objectivity 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.
- audit procedures: The specific work performed: inspection, observation, inquiry, confirmation, recalculation, reperformance and analytical procedures.
- sufficient appropriate audit evidence: Enough evidence, of the appropriate kind.
Related terms
- operating segment: A component of a public entity that may recognize revenues and incur expenses, whose operating results the chief operating decision maker reviews to allocate resources and assess performance, and for which discrete financial information is available.