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WGU D251 ADVANCED AUDITING 2024COMPREHENSIVE PRACTICE QUESTIONS WITH DETAILED VERIFIED ANSWERS GRADED A+(CORRECT 100%)!!!! $11.99   Add to cart

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WGU D251 ADVANCED AUDITING 2024COMPREHENSIVE PRACTICE QUESTIONS WITH DETAILED VERIFIED ANSWERS GRADED A+(CORRECT 100%)!!!!

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WGU D251 ADVANCED AUDITING 2024COMPREHENSIVE PRACTICE QUESTIONS WITH DETAILED VERIFIED ANSWERS GRADED A+(CORRECT 100%)!!!!

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  • April 6, 2024
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  • 2023/2024
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WGU D251 ADVANCED AUDITING 2024COMPREHENSIVE
PRACTICE QUESTIONS WITH DETAILED VERIFIED
ANSWERS GRADED A+(CORRECT 100%)!!!!
1) Which phrase or term regarding materiality is used by the Supreme Court of the United States and is
not found in FASB Concepts Statements No. 2

in light of surrounding circumstances

significantly altered the total mix of information available

magnitude of an omission or misstatement

probable that the judgment of a reasonable person - (correct answer) significantly altered the total
mix of information available

2) Which materiality does an auditor use when determining whether the financial statements overall are
materially correct?

performance materiality

Specific materiality

planning materiality

Posting materiality - (correct answer) performance materiality

3)What describes the misstatements identified throughout the audit that will be considered at the end of
the audit in determining whether the financial
statements overall are materially correct?

Posting materiality

Tolerable error

Overall materiality

Performance materiality - (correct answer) Posting materiality

4) When materiality judgments change during the audit opinion formulation process, what happens to
previous audit decisions that were based on
evidence obtained using the initial materiality setting?

The auditor repeats all audit procedures performed prior to the change in the materiality judgments.

The auditor reassesses those previous audit decisions.

The auditor takes no action.

The auditor modifies the audit opinion to note the change in the materiality judgments. - (correct
answer) The auditor reassesses those previous audit decisions.

,5)Which factor would result in control risk being assessed at a higher level?

Controls are well designed.

Accounting staff are well trained and educated.

There is a lack of supervision of accounting personnel.

The control environment is operating effectively. - (correct answer) There is a lack of supervision of
accounting personnel.

6) Which technique is used to analyze year-to-year comparisons of account balances?

Trend analysis

Ratio analysis

Variance analysis

Reasonableness test - (correct answer) Trend analysis

7) Which term describes the numerical depiction of the relationship between control risk, inherent risk,
and detection risk?

Risk assessment process

Risk of material misstatement

Data modeling

Audit risk model - (correct answer) Audit risk model

8)Which risk factor suggests a heightened level of risk of material misstatement?

Having key personnel of a company depart

Having a stable product

Declining a merger with another company

Having few immaterial related-party transactions - (correct answer) Having key personnel of a
company depart

8) What is the relationship between the risk of material misstatement and audit risk?

Correlational

Direct

None

Inverse - (correct answer) Inverse

,What is the typical range for the setting of audit risk?

0% to 5%

0% to 10%

1% to 10%

1% to 5% - (correct answer) 1% to 5%

9) Which risk result would likely be achieved from using a 1% level of detection risk?

A high detection risk and a low audit risk

A low detection risk and a low audit risk

A low detection risk and a high audit risk

A high detection risk and a high audit risk - (correct answer) A low detection risk and a low audit
risk

9) Which tests are eliminated when an auditor chooses not to rely on a client's internal controls because
the control design is ineffective?

Inquiries

Tests of control

Tests of details of balances

Substantive analytical procedures - (correct answer) Tests of control

10) In which audit procedure would sampling be appropriate?

Observation

Inquiry

Confirmation

Analytics - (correct answer) Confirmation

11) What is sampling risk?

When the sample does not contain characteristics representative of the sample such that inferences
made about that sample are incorrect

When the auditor incorrectly applies sampling methodology

When the sample does not contain characteristics representative of the population such that inferences
made about that population are incorrect

, When the sample size is larger than needed - (correct answer) When the sample does not contain
characteristics representative of the sample such that inferences made about that sample are incorrect

12)What is the auditor most concerned with when performing sampling?

Risk of incorrect rejection

Risk of incorrect acceptance

Risk of errors in the population

Risk of excess sample size - (correct answer) Risk of incorrect acceptance

13) What is a factor of nonsampling risk?

Using nonstatistical sampling

Having a sample that does not represent the population

Using a random sample selection

Not carrying out the appropriate audit procedure - (correct answer) Not carrying out the appropriate
audit procedure

14) Why do some auditors restrict the use of nonstatistical sampling?

It is less risky.

It is less objective.

It is less efficient.

It is less effective. - (correct answer) It is less objective.

15) What is the level at which the control's failure to operate would cause an auditor to conclude that the
control is not effective and would likely change
the auditor's planned assessment of control risk in performing tests of account balances?

Allowable risk of assessing the control risk as too low

Tolerable failure rate

Expected failure rate

Allowance for sampling error - (correct answer) Tolerable failure rate

16) Which statistical sampling method is most commonly used to test control procedures?

Attribute sampling

Dollar-unit sampling

Ratio estimation sampling

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