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2026 Statistics

Key Facts: CPA Australia Advanced Audit and Assurance Exam

5 x 20%

Equally Weighted Modules

CPA Australia Subject Page

195 min

Exam Time

CPA Australia Exam FAQs

540

Passing Scaled Score

CPA Australia Exam Results

Open book

Exam Format

CPA Australia Exam FAQs

MCQ

Question Type

CPA Australia Subject Outline

100

Free Practice Questions

OpenExamPrep

CPA Australia's Advanced Audit and Assurance is an open-book, multiple-choice elective in the CPA Program built around five equally weighted modules: the auditing and assurance framework; planning the audit; performing the audit; conclusions and reporting; and other assurance engagements (each 20%). Candidates have 195 minutes (3 hours 15 minutes) of exam time within a 225-minute appointment. Results are reported as a scaled score from 100 to 900, with 540 the pass standard set by a panel of CPAs and FCPAs. The exam is delivered through Pearson VUE test centres or OnVUE online proctoring and covers ISA/ASA standards, ASQM 1 quality management, APES 110 ethics, group audits, and sustainability assurance under ISSA 5000.

Sample CPA Australia Advanced Audit and Assurance Practice Questions

Try these sample questions to test your CPA Australia Advanced Audit and Assurance exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Under the assurance framework in ASAE 3000 / the IAASB International Framework for Assurance Engagements, which combination of elements must be present for an engagement to be an assurance engagement?

A.Only a two-party relationship between the practitioner and the responsible party plus a verbal opinion

B.A three-party relationship, a subject matter, suitable criteria, sufficient appropriate evidence, and a written assurance report

C.A subject matter and criteria, but evidence is optional where management provides representations

D.A signed engagement letter and a management representation letter, with no requirement for criteria

Explanation: The IAASB Framework specifies five elements of an assurance engagement: a three-party relationship (practitioner, responsible party, intended users), an appropriate underlying subject matter, suitable criteria, sufficient appropriate evidence, and a written assurance report. All five must be present.

2An assurance practitioner is engaged to provide limited assurance over an entity's greenhouse gas emissions statement. How does the nature of the conclusion in a limited assurance engagement differ from a reasonable assurance engagement?

A.Limited assurance gives a positive (affirmative) opinion, while reasonable assurance gives a negative opinion

B.Limited assurance expresses the conclusion in a negative form, stating nothing has come to the practitioner's attention indicating material misstatement, with engagement risk reduced to an acceptable but not low level

C.Limited and reasonable assurance produce identical conclusions; only the fee differs

D.Limited assurance requires the practitioner to guarantee the subject matter is free from all misstatement

Explanation: In a limited assurance engagement, procedures are deliberately more restricted and engagement risk is reduced to a level acceptable in the circumstances but greater than for reasonable assurance. The conclusion is therefore phrased negatively ('nothing has come to our attention'). Reasonable assurance gives a positive, affirmative opinion.

3Which body issues the Australian Auditing Standards (ASAs) that give legal force to the equivalent International Standards on Auditing (ISAs) for audits conducted under the Corporations Act 2001?

A.The Australian Securities and Investments Commission (ASIC)

B.The Australian Accounting Standards Board (AASB)

C.CPA Australia and Chartered Accountants ANZ jointly

D.The Auditing and Assurance Standards Board (AUASB)

Explanation: The AUASB is the standard-setting body that makes Australian Auditing Standards (ASAs), which are based on the IAASB's ISAs. ASAs made under section 336 of the Corporations Act 2001 have the force of law for Corporations Act audits.

4Under the APES 110 Code of Ethics (Independence Standards), a self-review threat to auditor independence most directly arises in which situation?

A.An audit team member previously prepared the accounting records or valuation now being audited by the same firm

B.The audit firm's fees from one client represent a large proportion of total firm revenue

C.A partner accepts a modest gift from the client at year end

D.The auditor is being sued by the client over an unrelated commercial matter

Explanation: A self-review threat occurs when the firm must evaluate, in the course of the audit, the results of a previous judgement or service it performed, such as preparing the client's accounting records or a valuation. The auditor may not appropriately evaluate its own prior work.

5Under ASA 220 / ISA 220 (Revised) and ASQM 1 (Quality Management), the engagement partner's responsibility for managing and achieving quality on an audit is best described as:

A.Delegated entirely to the firm's quality management function once the system of quality management is in place

B.Limited to signing the auditor's report at the conclusion of the engagement

C.Taking overall responsibility for managing and achieving quality, including being sufficiently and appropriately involved throughout the engagement

D.Confined to confirming that an engagement quality reviewer has been appointed

Explanation: Under ASA 220 (Revised), the engagement partner takes overall responsibility for managing and achieving quality on the engagement and must be sufficiently and appropriately involved throughout. ASQM 1 establishes the firm-level system of quality management that supports this.

6ASQM 1 (Quality Management for Firms) requires firms to adopt a quality management approach that is primarily:

A.A fixed checklist of policies applied identically to every firm regardless of size

B.Risk-based, requiring the firm to identify quality risks, design responses, and monitor and remediate the system

C.Focused only on independence confirmations collected annually

D.Concerned exclusively with the technical competence of new graduates

Explanation: ASQM 1 introduced a proactive, risk-based system of quality management. Firms must establish quality objectives, identify and assess quality risks, design and implement responses, and continuously monitor and remediate deficiencies, tailored to the nature and circumstances of the firm.

7Which of the following best describes the relationship between internal audit and external audit?

A.Internal audit reports to shareholders and external audit reports to management

B.External audit forms an independent opinion on the financial report for shareholders, while internal audit provides assurance and consulting to management and those charged with governance over risk, control, and governance

C.Internal audit must be performed by the same firm as the external audit to ensure consistency

D.External audit is optional whenever an internal audit function exists

Explanation: External auditors provide an independent opinion on the financial report primarily for shareholders. Internal audit is an internal function providing independent assurance and consulting to management and those charged with governance on the effectiveness of risk management, control, and governance processes.

8Under ASA 610 / ISA 610, when can the external auditor use the work of the internal audit function to obtain audit evidence?

A.Always, because internal audit is part of the same entity and therefore reliable

B.Only after evaluating the function's objectivity, competence, and whether it applies a systematic and disciplined approach, and the work is appropriate to the auditor's purposes

C.Never, because internal audit lacks independence from the entity

D.Only if the internal audit function is outsourced to a Big Four firm

Explanation: ASA 610 permits the external auditor to use the internal audit function's work only after evaluating its objectivity (organisational status), level of competence, and whether it applies a systematic and disciplined approach including quality control. The external auditor remains solely responsible for the audit opinion.

9The overarching objective of an audit of a financial report, as stated in ASA 200 / ISA 200, is for the auditor to:

A.Detect and report every fraud and error, regardless of materiality

B.Prepare the financial report in accordance with the applicable financial reporting framework

C.Obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, and to report on the financial report

D.Provide a guarantee of the entity's future viability to lenders

Explanation: ASA 200 states the auditor's objective is to obtain reasonable assurance that the financial report as a whole is free from material misstatement, whether due to fraud or error, and to express an opinion and report. Reasonable assurance is high but not absolute.

10Professional scepticism, as required by the auditing standards, is best described as:

A.An assumption that management is dishonest until proven otherwise

B.An attitude that includes a questioning mind, being alert to conditions that may indicate misstatement, and a critical assessment of audit evidence

C.Accepting management's explanations to maintain a good client relationship

D.Performing only the procedures management requests

Explanation: Professional scepticism is an attitude that includes a questioning mind, being alert to conditions that may indicate possible misstatement due to error or fraud, and a critical assessment of audit evidence. It does not presume dishonesty but does not assume unquestioned honesty either.

About the CPA Australia Advanced Audit and Assurance Exam

Advanced Audit and Assurance is a CPA Program elective covering the assurance framework, international and Australian auditing standards (ISA/ASA) applied to complex audits, planning, risk and materiality, evidence, group audits, conclusions and reporting, assurance engagements beyond audit, sustainability assurance, and ethics and independence, assessed by an open-book multiple-choice exam.

Assessment

Question count not published by the exam provider

Time Limit

195 minutes (3 hours 15 minutes)

Passing Score

Scaled score of 540 (scale 100-900)

Exam Fee

Charged as a CPA Program subject enrolment fee set by CPA Australia for the semester; see CPA Australia important dates and fees (CPA Australia / Pearson VUE)

CPA Australia Advanced Audit and Assurance Exam Content Outline

20%

The auditing and assurance framework

Assurance framework and elements, ISA/ASA and IAASB pronouncements, ASQM 1 quality management, APES 110 ethics and independence, internal versus external audit, and the assurance engagement environment.

20%

Planning the audit of historical financial information

Engagement acceptance, understanding the entity, risk and materiality (ASA 315/320), fraud risk (ASA 240), internal control components, audit strategy and plan (ASA 300), and significant risks.

20%

Performing the audit of historical financial information

Responses to risk (ASA 330), audit evidence and procedures (ASA 500/501/505/520/530), accounting estimates (ASA 540), using experts and internal audit, group audits (ASA 600), and service organisations (ASA 402).

20%

Conclusions and reporting responsibilities for an audit

Evaluating misstatements (ASA 450), subsequent events and going concern (ASA 560/570), audit opinions and modifications (ASA 700/705/706), key audit matters (ASA 701), other information (ASA 720), and statutory reporting.

20%

Other assurance engagements

Reviews (ASRE 2410), assurance engagements under ASAE 3000/3402/3100/3450, agreed-upon procedures (ASRS 4400), sustainability assurance (ISSA 5000), public sector and performance audits, and emerging assurance developments.

How to Pass the CPA Australia Advanced Audit and Assurance Exam

What You Need to Know

Passing score: Scaled score of 540 (scale 100-900)
Assessment: Question count not published by the exam provider
Time limit: 195 minutes (3 hours 15 minutes)
Exam fee: Charged as a CPA Program subject enrolment fee set by CPA Australia for the semester; see CPA Australia important dates and fees

Keys to Passing

Work through all 100 available questions
Review every answer and explanation
Track weak areas and revisit them
Use our AI tutor for tough concepts

CPA Australia Advanced Audit and Assurance Study Tips from Top Performers

1Because the exam is open book, build a tabbed, indexed study guide so you can locate the relevant ASA/ASAE standard quickly under time pressure rather than reading from scratch.

2Practise applying the audit risk model and materiality (ASA 315/320/330) to scenarios, as application questions reward reasoning over rote recall.

3Memorise the decision logic for opinion modifications (ASA 705): material versus pervasive, and misstatement versus inability to obtain evidence.

4Give focused attention to newer content such as ASQM 1 quality management, the revised ASA 600 group audits, and ISSA 5000 sustainability assurance, which are common exam differentiators.

5Drill the APES 110 threats (self-interest, self-review, advocacy, familiarity, intimidation) and the safeguards that address each.

6Complete full timed practice sets within 195 minutes so your pacing and open-book navigation are exam-ready.

Frequently Asked Questions

What is the format of the CPA Australia Advanced Audit and Assurance exam?

CPA Australia states the Advanced Audit and Assurance exam comprises multiple-choice questions, including knowledge, application, and problem-solving items. It is a computer-based exam delivered through Pearson VUE test centres or OnVUE online proctoring, and candidates have 195 minutes (3 hours 15 minutes) of exam time.

Is the CPA Australia Advanced Audit and Assurance exam open book?

Yes. CPA Australia states that all CPA Program exams are open book (with the exception of Singapore Taxation). Candidates may refer to their study guide and printed materials during the exam, though strong preparation is still essential because the questions are application-focused.

How many modules does Advanced Audit and Assurance have and what are their weightings?

The subject has five modules, each weighted 20% in the exam: the auditing and assurance framework; planning the audit of historical financial information; performing the audit of historical financial information; conclusions and reporting responsibilities for an audit; and other assurance engagements.

What is the pass mark for CPA Australia Advanced Audit and Assurance?

CPA Australia reports exam results as a scaled score from 100 to 900, with a passing scaled score of 540. The pass standard is set by a panel of CPAs and FCPAs based on the minimum competency required and the difficulty of each exam form, so it does not equate to a fixed raw percentage.

How many questions are on the Advanced Audit and Assurance exam?

CPA Australia describes the exam as comprising multiple-choice questions but does not publish a fixed number of questions for Advanced Audit and Assurance. Our free practice bank provides 100 multiple-choice questions distributed across the five modules.

Is Advanced Audit and Assurance compulsory in the CPA Program?

It is an elective, but it becomes compulsory for candidates who have not completed recognised audit study where audit is required in their CPA Program. Candidates with recognised prior audit study may choose a different elective.

Which auditing standards does the subject cover?

The subject covers the International Standards on Auditing (ISAs) and their Australian equivalents (ASAs), the IAASB assurance framework, ASQM 1 and ASQM 2 quality management, the APES 110 Code of Ethics, and assurance standards including ASAE 3000, ASAE 3402, and ISSA 5000 for sustainability assurance.

Can I sit the exam online?

Yes. CPA Australia offers exams through Pearson VUE test centres and OnVUE online proctoring, subject to meeting the technical and environment requirements for online proctored exams.

100+ Free CPA Australia Advanced Audit and Assurance Practice Questions

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