Page 1 of 103
WGU D251 - ADVANCED AUDITING FINAL EXAM
| {LATEST 2026/ 2027 UPDATE} COMPLETE
ACTUAL AND AUTHENTIC EXAM | BRAND NEW!
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
significantly altered the total mix of information available
,Page 2 of 103
Which action is an auditor required to take after discovering an
illegal act for publicly listed companies?
Notify management and the audit committee
Notify the Public Company Accounting Oversight Board (PCAOB)
Notify the applicable state board of accountancy
Notify the U.S. Securities and Exchange Commission (SEC)
Notify management and the audit committee
Which combination of risks is the risk of material misstatement
referring to?
Audit and detection risk
Audit and control risk
Inherent and control risk
,Page 3 of 103
Inherent and detection risk
Inherent and control risk
What should an auditor communicate to management and the
audit committee, for integrated audit clients, prior to issuing the
auditor's report on the ICFR?
A report summarizing all significant audit adjustments
A report summarizing the quality of internal controls
A report detailing all major disagreements with management
A report detailing the quality of the company's financial
statements
A report summarizing the quality of internal controls
, Page 4 of 103
What is the objective of the management letter from the auditor
to the client?
To repeat in writing to management matters previously discussed
with the audit committee
To document important discussions with the client for legal
purposes
To make significant operational or control recommendations to
the client
To document important discussions with the client for quality
control purposes
To make significant operational or control recommendations to
the client
In which situation could management and an auditor decide not
to correct the misstatements found during an audit?
The misstatements, in the aggregate, are immaterial.
WGU D251 - ADVANCED AUDITING FINAL EXAM
| {LATEST 2026/ 2027 UPDATE} COMPLETE
ACTUAL AND AUTHENTIC EXAM | BRAND NEW!
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
significantly altered the total mix of information available
,Page 2 of 103
Which action is an auditor required to take after discovering an
illegal act for publicly listed companies?
Notify management and the audit committee
Notify the Public Company Accounting Oversight Board (PCAOB)
Notify the applicable state board of accountancy
Notify the U.S. Securities and Exchange Commission (SEC)
Notify management and the audit committee
Which combination of risks is the risk of material misstatement
referring to?
Audit and detection risk
Audit and control risk
Inherent and control risk
,Page 3 of 103
Inherent and detection risk
Inherent and control risk
What should an auditor communicate to management and the
audit committee, for integrated audit clients, prior to issuing the
auditor's report on the ICFR?
A report summarizing all significant audit adjustments
A report summarizing the quality of internal controls
A report detailing all major disagreements with management
A report detailing the quality of the company's financial
statements
A report summarizing the quality of internal controls
, Page 4 of 103
What is the objective of the management letter from the auditor
to the client?
To repeat in writing to management matters previously discussed
with the audit committee
To document important discussions with the client for legal
purposes
To make significant operational or control recommendations to
the client
To document important discussions with the client for quality
control purposes
To make significant operational or control recommendations to
the client
In which situation could management and an auditor decide not
to correct the misstatements found during an audit?
The misstatements, in the aggregate, are immaterial.
