WGU - D251 Advanced Auditing
Terms in this set (249)
Accounts Payable Turnover Purchases/Average Accounts Payable
Formula
Another term for Unmodified Opinion
Unqualified Opinion?
AP Turnover Ratio Formula Accounts Payable/Current liabilities
At which percentage do 5% of planning materiality
auditors commonly set
posting materiality?
An auditor concludes that Issue an adverse opinion
an illegal act has been
committed, the act has a
material effect on the
financial statements, and
the act has not been
properly disclosed.What
should the auditor do?
An auditor determines 75% of $500,000
overall materiality of
$500,000 would be material
to the income statement
and $1,000,000 would be
material to the balance
sheet. Which amount would
an auditor typically assess
performance materiality to
be for this client?
, An auditor has determined The auditor should perform additional substantive audit
performance materiality has procedures.
been set too high at the
beginning of the audit.
Which procedures should
this auditor consider to
detect misstatements?
An auditor is reviewing the The amount of the client's inventory stored at the
shipping policy of a large retailer's location
supply company. The title to
goods shipped is not
changed until the retailer
sells the goods to their
customers. Which primary
concern should the auditor
have about this practice?
The auditor notified the Notify the client and any regulatory agency with
client to make appropriate jurisdiction over the client that the audit report should no
and timely disclosures of longer be associated with the client's financial
new material facts, but the statements
client did not cooperate.
What should the auditor do
next?
Auditors use Overall Determine whether financial statements overall are
Materiality to ___________. materially correct.
Auditor uses Performance Determining significant accounts, locations, and audit
Materiality for ____________. procedures.
Can Monetary Unit No - Overstatements only
Sampling test for
Understatements?
Terms in this set (249)
Accounts Payable Turnover Purchases/Average Accounts Payable
Formula
Another term for Unmodified Opinion
Unqualified Opinion?
AP Turnover Ratio Formula Accounts Payable/Current liabilities
At which percentage do 5% of planning materiality
auditors commonly set
posting materiality?
An auditor concludes that Issue an adverse opinion
an illegal act has been
committed, the act has a
material effect on the
financial statements, and
the act has not been
properly disclosed.What
should the auditor do?
An auditor determines 75% of $500,000
overall materiality of
$500,000 would be material
to the income statement
and $1,000,000 would be
material to the balance
sheet. Which amount would
an auditor typically assess
performance materiality to
be for this client?
, An auditor has determined The auditor should perform additional substantive audit
performance materiality has procedures.
been set too high at the
beginning of the audit.
Which procedures should
this auditor consider to
detect misstatements?
An auditor is reviewing the The amount of the client's inventory stored at the
shipping policy of a large retailer's location
supply company. The title to
goods shipped is not
changed until the retailer
sells the goods to their
customers. Which primary
concern should the auditor
have about this practice?
The auditor notified the Notify the client and any regulatory agency with
client to make appropriate jurisdiction over the client that the audit report should no
and timely disclosures of longer be associated with the client's financial
new material facts, but the statements
client did not cooperate.
What should the auditor do
next?
Auditors use Overall Determine whether financial statements overall are
Materiality to ___________. materially correct.
Auditor uses Performance Determining significant accounts, locations, and audit
Materiality for ____________. procedures.
Can Monetary Unit No - Overstatements only
Sampling test for
Understatements?
