Key CPA Exam Takeaways

High-Yield Review

• Audit evidence must be sufficient (quantity) and appropriate (quality).
• External evidence is generally more reliable than internal evidence.
• Confirmation, inspection, observation, inquiry, recalculation, reperformance, and analytical procedures are the primary evidence-gathering techniques.
• Written management representations are required but are not sufficient alone.
• Working papers document procedures, evidence, and conclusions.
• Audit documentation belongs to the auditor.
• Analytical procedures are required during planning and final review.

Reliable evidence supports a reliable audit opinion.