WGU D251 Pre Assessment – Questions With A+
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Terms in this set (50)
What is materiality level that an auditor d. Performance Materiality
uses for determining significant
accounts, significant locations, and
audit procedures for those accounts
and locations?
a. Planning Materiality
b. Overall Materiality
c. Posting Materiality
d. Performance Materiality
An auditor has determined a. The auditor should perform additional substantive
performance materiality has been set audit procedures
too high at the beginning of the audit.
Which procedures should this auditor
consider to detect misstatements?
a. The auditor should perform
additional substantive audit
procedures
b. The auditor should perform
additional control audit procedures.
c. The auditor should perform fewer
control audit procedures
d. The auditor should perform fewer
substantive procedures
,Which risk exists at the overall d. Risk of material misstatement
financial statement level and at the
assertion level and can be
categorized as involving inherent risk
and control risk?
a. Client business risk
b. Auditor business risk
c. Engagement risk
d. Risk of material misstatement
What represents an identified and b. Significant risk
assessed risk of material misstatement
that requires special audit
consideration?
a. Audit risk
b. Significant risk
c. Control risk
d. Inherent risk
What is the impact on the amount of b. The acceptable audit risk is reduced
acceptable audit risk if an auditor
believes the chance of financial failure
of a client is high?
a. The acceptable audit risk is zero
b. The acceptable audit risk is reduced
c. The acceptable audit risk is
increased
d. The acceptable audit risk remains
the same
, Which factor should lead an auditor to b. The account balance consists of a large number of
assess inherent risk as high? complex transactions
a. The account balance consists of a
high volume of routine transactions
b. The account balance consists of a
large number of complex transactions
c. The account balance is subject to a
large number of routine year-end
adjustments
d. The account balance requires a high
level of client estimation, which the
auditor has audited
Which factor would lead an auditor to c. The client's use of information technology is
assess client business risk at a higher incompatible across systems and processes
level?
a. The overall business climate for the
client appears to be mixed for the
foreseeable future
b. The client has hired somewhat
experienced personnel to deal with
industry changes
c. The client's use of information
technology is incompatible across
systems and processes
d. The client has developed
technology-related partnerships
Solutions
Save
Terms in this set (50)
What is materiality level that an auditor d. Performance Materiality
uses for determining significant
accounts, significant locations, and
audit procedures for those accounts
and locations?
a. Planning Materiality
b. Overall Materiality
c. Posting Materiality
d. Performance Materiality
An auditor has determined a. The auditor should perform additional substantive
performance materiality has been set audit procedures
too high at the beginning of the audit.
Which procedures should this auditor
consider to detect misstatements?
a. The auditor should perform
additional substantive audit
procedures
b. The auditor should perform
additional control audit procedures.
c. The auditor should perform fewer
control audit procedures
d. The auditor should perform fewer
substantive procedures
,Which risk exists at the overall d. Risk of material misstatement
financial statement level and at the
assertion level and can be
categorized as involving inherent risk
and control risk?
a. Client business risk
b. Auditor business risk
c. Engagement risk
d. Risk of material misstatement
What represents an identified and b. Significant risk
assessed risk of material misstatement
that requires special audit
consideration?
a. Audit risk
b. Significant risk
c. Control risk
d. Inherent risk
What is the impact on the amount of b. The acceptable audit risk is reduced
acceptable audit risk if an auditor
believes the chance of financial failure
of a client is high?
a. The acceptable audit risk is zero
b. The acceptable audit risk is reduced
c. The acceptable audit risk is
increased
d. The acceptable audit risk remains
the same
, Which factor should lead an auditor to b. The account balance consists of a large number of
assess inherent risk as high? complex transactions
a. The account balance consists of a
high volume of routine transactions
b. The account balance consists of a
large number of complex transactions
c. The account balance is subject to a
large number of routine year-end
adjustments
d. The account balance requires a high
level of client estimation, which the
auditor has audited
Which factor would lead an auditor to c. The client's use of information technology is
assess client business risk at a higher incompatible across systems and processes
level?
a. The overall business climate for the
client appears to be mixed for the
foreseeable future
b. The client has hired somewhat
experienced personnel to deal with
industry changes
c. The client's use of information
technology is incompatible across
systems and processes
d. The client has developed
technology-related partnerships
