CPA AUD Audit Evidence & Procedures Practice Questions
Audit Evidence & Procedures makes up 6 of every 50 questions on a Tigertest CPA AUD practice test. Here are 10 of the 24 questions on it, each with the answer and the reason.
Updated by the Tigertest team. Based on the AICPA's 2026 AUD blueprint. Original multiple-choice questions; simulations not included. Not affiliated with the AICPA, NASBA or the PCAOB.
1. Which source of evidence is generally the most reliable?
- A.A photocopy supplied by the client
- B.Sent directly by a third party
- C.Generated inside the entity
- D.Given orally by management
Answer: B. Evidence from independent outside sources, obtained directly by the auditor, is more reliable than internal, oral or copied evidence.
2. The appropriateness of audit evidence is a measure of its:
- A.Timing and extent of testing
- B.Source and volume of documents
- C.Quantity and cost to obtain
- D.Relevance and reliability
Answer: D. Sufficiency is the quantity of evidence. Appropriateness is its quality, meaning relevance and reliability.
3. Vouching recorded sales entries back to shipping documents mainly tests:
- A.Occurrence
- B.Classification
- C.Completeness
- D.Cutoff only
Answer: A. Starting from the records and going to the source documents tests whether recorded transactions actually happened.
4. Tracing shipping documents forward to recorded sales mainly tests:
- A.Rights and obligations
- B.Presentation
- C.Completeness
- D.Occurrence
Answer: C. Starting from the source documents and going to the records tests whether every real transaction was recorded.
5. A search for unrecorded liabilities is best performed by examining:
- A.Prior year's payables list
- B.Open purchase orders only
- C.Payments made after year-end
- D.Year-end trial balance totals
Answer: C. Cash disbursements after the balance sheet date, and unpaid invoices received then, show liabilities that existed at year-end but were not recorded.
6. In an audit of a nonissuer, negative confirmations of receivables are suitable as the only substantive procedure only when, among other conditions:
- A.A low exception rate is expected
- B.Control risk is assessed high
- C.Customers are likely to ignore them
- D.Balances are few and large
Answer: A. Negative confirmations alone are used when the risk of material misstatement is low, the population has many small homogeneous balances, few exceptions are expected and recipients are not expected to disregard them.
7. A customer does not reply to a positive confirmation request. The best alternative procedure is to examine:
- A.The client's sales budget
- B.The customer's credit file
- C.The aged trial balance
- D.Cash received after year-end
Answer: D. Subsequent cash receipts matched to the specific invoices that made up the year-end balance give strong evidence of existence.
8. When sending confirmations, the auditor should:
- A.Send only to related parties
- B.Keep control of the requests
- C.Let the client mail them
- D.Ask replies to go to the client
Answer: B. The auditor maintains control over confirmation requests and responses to reduce the risk of interception or alteration.
9. Under AU-C 520, when are analytical procedures required in an audit of a nonissuer?
- A.Only when controls fail
- B.Near the end of the audit
- C.Only as substantive tests
- D.Only for revenue
Answer: B. Analytical procedures are required in risk assessment and near the end of the audit to form an overall conclusion. Substantive analytics are optional.
10. For a substantive analytical procedure, which expectation is most precise?
- A.Published industry averages
- B.Last year's audited balance
- C.Annual company-wide totals
- D.Monthly figures by store
Answer: D. More disaggregated data, such as monthly amounts by location, give a more precise expectation that can detect smaller misstatements.
Practice all 24 audit evidence & procedures questions, and the rest of the 200-question bank, in the free CPA AUD training sets. Questions you miss come back until you have mastered them.
Start practicingFree to start. No account needed.