AICPA Cheat Sheet 2026

The 30 highest-yield AICPA facts, distilled from real exam questions. Print it, save it as a PDF, or study it here — free, no sign-up.

1. What quality metrics are most important in Auditing Standards? → Measurable outcomes, process compliance, and stakeholder satisfaction
2. A company uses a just-in-time (JIT) inventory system. Which outcome is a primary benefit? → Reduced inventory carrying costs
3. What is the significance of documentation in Tax Compliance? → It provides a record for accountability, quality assurance, and legal compliance
4. When an auditor is unable to obtain sufficient appropriate audit evidence about a material account balance, the appropriate audit report modification is: → Qualified opinion or disclaimer of opinion
5. Under U.S. GAAP, research and development (R&D) costs are generally: → Expensed as incurred
6. Which financial ratio is most useful for assessing a company’s short-term liquidity? → Current ratio
7. What is the maximum amount of the lifetime estate and gift tax exemption for an individual in 2025? → $12.92 million
8. Under GAAS, the standard of 'due professional care' requires that an auditor: → Exercise the skill and diligence of a reasonably competent auditor
9. A company issues 1,000 shares of $1 par value stock for $15 per share. The journal entry includes: → Debit cash $15,000; Credit common stock $1,000 and additional paid-in capital $14,000
10. What is the primary purpose of standardized procedures in Auditing Standards? → To ensure consistency, safety, and quality across all practitioners
11. A relevant cost for a make-or-buy decision is best described as a cost that: → Differs between the make and buy alternatives and will be incurred in the future
12. Under the Sarbanes-Oxley Act, which of the following is prohibited for a registered public accounting firm providing audit services to a public company? → Providing bookkeeping services for the audit client
13. The Treasury Department's Circular 230 governs the practice of which of the following before the IRS? → CPAs, attorneys, enrolled agents, and other practitioners
14. Which type of IT control automatically prevents an invalid transaction from being processed in an accounting system? → Preventive application control
15. Which of the following describes the concept of 'piercing the corporate veil' in business law? → Holding shareholders personally liable by disregarding the corporate entity
16. A company issues bonds at a premium. How is the premium amortized under the effective interest method? → Debited to premium on bonds payable and credited to interest expense
17. Which economic term describes the additional cost of producing one more unit of output? → Marginal cost
18. Which data backup strategy ensures the shortest recovery time objective (RTO) by maintaining a continuously updated copy of the production database? → Hot site with real-time replication
19. For AMT purposes, which of the following is an adjustment that may increase alternative minimum taxable income for individual taxpayers? → Standard deduction claimed instead of itemizing
20. Which of the following appears in a Statement of Cash Flows for a proprietary fund but does NOT apply to governmental funds? → Cash flows from capital and related financing activities
21. A flexible budget differs from a static budget in that it: → Adjusts revenues and variable costs to the actual activity level achieved
22. What is the significance of documentation in Auditing Standards? → It provides a record for accountability, quality assurance, and legal compliance
23. Under ASC 815, a derivative instrument designated as a fair value hedge is used to hedge against: → Changes in the fair value of a recognized asset or liability
24. Under AU-C 265, which parties must an auditor communicate identified material weaknesses in internal control to? → Management and those charged with governance
25. Which approach is most effective for problem-solving in Tax Compliance? → Systematic analysis followed by evidence-based decision making
26. Which of the following is the primary purpose of an auditor’s test of controls? → To evaluate the efficiency and effectiveness of internal controls
27. Which condition must exist for an auditor to issue a going concern explanatory paragraph in an otherwise unmodified opinion? → Substantial doubt about the entity's ability to continue as a going concern
28. When should an auditor issue an adverse opinion? → When the financial statements are materially misstated and the misstatements are pervasive
29. Which of the following is a primary function of corporate governance? → To oversee the company's adherence to internal policies and procedures
30. Under AICPA ethics rules, a CPA firm's independence is considered impaired if a covered member has which of the following interests in an attest client? → A direct financial interest, regardless of materiality