CPA AUD: Planning, understanding the entity and materiality
Blueprint II.A, II.B, II.D, II.F · Area II, Assessing Risk and Developing a Planned Response · 25–35% of AUD
Ten AUD questions on planning, understanding the entity and materiality, untimed, with a reason for every answer option.
Or take the full AUD mock examAn auditor sets overall materiality at 5% of pretax income of $2,000,000 and performance materiality at 75% of overall materiality. What is performance materiality?
Planning, understanding the entity and materiality on CPA AUD
Area II of AUD (25–35%) is about assessing risk and planning the response. This topic covers planning, understanding the entity and its environment, materiality, and using the work of internal auditors and specialists.
- Blueprint groups
- II.A, II.B, II.D, II.F
- Share of the section
- Area II, Assessing Risk and Developing a Planned Response: 25–35%
- Our drill
- 10 questions from 10 on this topic, untimed, with a reason for every option; one free attempt, unlimited with a pass
What to know
- Risk assessment procedures are inquiries, analytical procedures, and observation and inspection (AU-C 315.14).
- Performance materiality is set below overall materiality to reduce the probability that aggregate uncorrected and undetected misstatements exceed materiality (AU-C 320.09).
- Misstatements are accumulated unless clearly trivial (AU-C 450.05).
- The overall audit strategy sets scope, timing and direction; the audit plan sets the nature, timing and extent of procedures (AU-C 300).
- Before using internal audit's work, the auditor evaluates its objectivity, competence and systematic, disciplined approach (AU-C 610).
- Under SAS 149, the group engagement team sets component performance materiality below group performance materiality.
Test yourself on planning, understanding the entity and materiality
Ten AUD questions on planning, understanding the entity and materiality, untimed, with a reason for every answer option.
Or take the full AUD mock examCommon questions
How much of the AUD section is planning, understanding the entity and materiality?
It sits in Blueprint Area II (II.A, II.B, II.D, II.F). The AICPA weights whole areas, not single topics; see the area’s range on the AUD page. Our 78-question mock draws each area at the middle of its range.
Are these real AUD questions?
No. The AICPA does not release live exam questions. These are original practice questions written to the published 2027 CPA Exam Blueprints, with a reason for every answer option and the standard or code section behind the key.
More AUD topics
- Ethics, independence and professional skepticismdrill
- Engagement terms, documentation, communications and quality managementdrill
- Internal control and ITdrill
- Risk of material misstatement and frauddrill
- Evidence, audit procedures and samplingdrill
- Specific matters, misstatements, representations and subsequent eventsdrill
- Audit reportsdrill
- Attestation, review, compilation and compliance reportsdrill
AUD full mock exam: 4 hours, 5 testletsAUD task-based simulations
Blueprint and exam facts checked November 2026: AICPA: Learn what is tested on the CPA Exam (Blueprints effective January 1, 2027) · AICPA: CPA Exam score release and testing windows · NASBA: CPA Exam FAQ · Virginia Board of Accountancy: CPA Exam fees.
Original independent practice questions written to the AICPA CPA Exam Blueprints. Not affiliated with or endorsed by the AICPA or NASBA.