Changes to the U.S. CPA Audit Exam Starting in 2021

Auburndale, FL -- (SBWire) -- 10/15/2021 --Due to the growing complexity in the fields of accounting and auditing, the U.S. CPA AUD exam will now test new topics, while also removing a few topics from the exam. The topics removed include opening balances, the auditing of derivatives, and the communication of "other matters" with management and those charged with governance. Additionally, the topics of single statements, alerts that restrict the use of written communication, and letters for underwriters and filings with the SEC will be removed.

The new exam topics will include audit data analytics, business processes and internal controls, and SOC1 and SOC2 reports. Audits rely increasingly more on automated processes to perform workpapers, which both helps efficiency and accuracy. Students need to be prepared to distinguish between raw data and structured data. Companies under audit often rely on service providers to help with the accounting of areas such as 401(k) plans or payroll, which leads to the increased focus on SOC1 and SOC2 reports.

Furthermore, the AUD exam will now test certain topics at a more simplified level. These topics include related party transactions, the testing of a company's ability to continue as a going concern, and the preparation of compilation reports. Other topics being tested at a more basic level also include preconditions for an engagement, subsequently discovered facts, and developing a detailed engagement plan.

There have not been any exam changes yet announced for the U.S. CPA exams for 2022.