CPA AUD: Risk of material misstatement and fraud
Blueprint II.E, II.G · Area II, Assessing Risk and Developing a Planned Response · 25–35% of AUD
Ten AUD questions on risk of material misstatement and fraud, untimed, with a reason for every answer option.
Or take the full AUD mock examWhich fraud risk is presumed in every audit and cannot be rebutted?
Risk of material misstatement and fraud on CPA AUD
This topic covers assessing and responding to the risks of material misstatement under SAS 145, fraud risk under AU-C 240, and specific risk areas such as laws and regulations.
- Blueprint groups
- II.E, II.G
- 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
- Audit risk = risk of material misstatement × detection risk; higher assessed risk calls for lower detection risk and more persuasive evidence.
- SAS 145 assesses inherent risk on a spectrum using inherent risk factors: complexity, subjectivity, change, uncertainty and susceptibility to bias or fraud.
- Revenue recognition fraud risk is presumed but can be rebutted; management override is a risk in every audit (AU-C 240.26 and 240.31).
- Responses to management override: test journal entries, review estimates for bias and evaluate significant unusual transactions (AU-C 240.32).
- Significant risks require substantive procedures specifically responsive to them, including tests of details if only substantive procedures are used (AU-C 330.22).
- For direct-effect laws, the auditor obtains sufficient appropriate evidence of compliance; for other laws, procedures are limited to inquiry and inspection of correspondence (AU-C 250).
Test yourself on risk of material misstatement and fraud
Ten AUD questions on risk of material misstatement and fraud, untimed, with a reason for every answer option.
Or take the full AUD mock examCommon questions
How much of the AUD section is risk of material misstatement and fraud?
It sits in Blueprint Area II (II.E, II.G). 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
- Planning, understanding the entity and materialitydrill
- Internal control and ITdrill
- 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.