WGU D251 ADVANCED AUDITING FINAL
EXAM | NEWEST ACTUAL EXAM
COMPREHENSIVE QUESTIONS AND
VERIFIED ANSWERS GRADED A+ | 100%
PASS | 2025 UPDATE!
What is Block Sampling? - ✔✔✔ Correct Answer > Nonstatistical
sampling method that involves selecting a sample that consists of
contiguous population items, such as selecting transactions by day or
week
What is supply chain management? - ✔✔✔ Correct Answer >
Management and control of materials in the logistics process from the
acquisition of raw materials to the delivery of finished products to the
end user (customer)
Which management assertion would cause an auditor to use a
nonstatistical sampling method? - ✔✔✔ Correct Answer > Existence
What is the Iron Curtain Method? - ✔✔✔ Correct Answer > Zero
reliance on internal controls with detailed transaction testing and audit
procedures
,What is an Automated Purchasing System? - ✔✔✔ Correct Answer >
A networked software system linking to vendors whose offerings and
prices supply chain management personnel have preapproved
How is the tainting percentage calculated? - ✔✔✔ Correct Answer >
The amount of misstatement in an item divided by the item's recorded
amount
What is an unqualified opinion? - ✔✔✔ Correct Answer > The
auditor has no reservations about the fairness of presentation of the
financial statements
How does the AICPA describe audit reporting? - ✔✔✔ Correct
Answer > The purpose of an audit is to enhance the degree of
confidence that users can place in the financial statement. This purpose
is achieved when an auditor expresses an opinion on the financial
statements.
What procedure can test 100% of the population? - ✔✔✔ Correct
Answer > Data Analytics Analysis
What factor is used in planning samples and represents the precision
required to keep sampling risk at the desired level? - ✔✔✔ Correct
Answer > Allowance for Sampling Error
,What is a Type I subsequent event? - ✔✔✔ Correct Answer > Events
that existed at the balance sheet date
What is a type II subsequent event? - ✔✔✔ Correct Answer > Events
that did not exist at the balance sheet date, but may require disclosure
Who signs the management representation letter? - ✔✔✔ Correct
Answer > CEO and CFO
To whom would an audit team communicate difficulties in performing
an audit? - ✔✔✔ Correct Answer > The Audit Committee
The auditor notified the client to make appropriate and timely
disclosures of new material facts, but the client did not cooperate.
What should the auditor do next? - ✔✔✔ Correct Answer > Notify
the client and any regulatory agency with jurisdiction over the client
that the audit report should no longer be associated with the client's
financial statements
Which statement would be included in a management representation
letter? - ✔✔✔ Correct Answer > "The effects of uncorrected
misstatements are immaterial, both individually and in the aggregate."
What is Positive Assurance? - ✔✔✔ Correct Answer > An explicit
statement as to whether the financial statements are presented fairly
, and, for larger U.S. public companies, whether internal control over
financial reporting is effective.
Another term for Unqualified Opinion? - ✔✔✔ Correct Answer >
Unmodified Opinion
How does the PCAOB describe audit reporting? - ✔✔✔ Correct
Answer > The objective of the ordinary audit of financial statements by
the independent auditor is the expression of an opinion on the fairness
with which they present, in all material respects, financial position,
results of operations, and its cash flows in conformity with generally
accepted accounting principles. The auditor's report is the medium
through which he expresses his opinion or, if circumstances require,
disclaims an opinion.
How does the IAASB describe audit reporting? - ✔✔✔ Correct
Answer > To form an opinion on the financial statements based on an
evaluation of the conclusions drawn from the audit evidence obtained
What are the conditions to issue an unqualified report? - ✔✔✔
Correct Answer > No material violations of GAAP, disclosures are
accurate, all necessary procedures performed, no change in accounting
principles that had a material effect, no doubt of going concern, auditor
is independent.
EXAM | NEWEST ACTUAL EXAM
COMPREHENSIVE QUESTIONS AND
VERIFIED ANSWERS GRADED A+ | 100%
PASS | 2025 UPDATE!
What is Block Sampling? - ✔✔✔ Correct Answer > Nonstatistical
sampling method that involves selecting a sample that consists of
contiguous population items, such as selecting transactions by day or
week
What is supply chain management? - ✔✔✔ Correct Answer >
Management and control of materials in the logistics process from the
acquisition of raw materials to the delivery of finished products to the
end user (customer)
Which management assertion would cause an auditor to use a
nonstatistical sampling method? - ✔✔✔ Correct Answer > Existence
What is the Iron Curtain Method? - ✔✔✔ Correct Answer > Zero
reliance on internal controls with detailed transaction testing and audit
procedures
,What is an Automated Purchasing System? - ✔✔✔ Correct Answer >
A networked software system linking to vendors whose offerings and
prices supply chain management personnel have preapproved
How is the tainting percentage calculated? - ✔✔✔ Correct Answer >
The amount of misstatement in an item divided by the item's recorded
amount
What is an unqualified opinion? - ✔✔✔ Correct Answer > The
auditor has no reservations about the fairness of presentation of the
financial statements
How does the AICPA describe audit reporting? - ✔✔✔ Correct
Answer > The purpose of an audit is to enhance the degree of
confidence that users can place in the financial statement. This purpose
is achieved when an auditor expresses an opinion on the financial
statements.
What procedure can test 100% of the population? - ✔✔✔ Correct
Answer > Data Analytics Analysis
What factor is used in planning samples and represents the precision
required to keep sampling risk at the desired level? - ✔✔✔ Correct
Answer > Allowance for Sampling Error
,What is a Type I subsequent event? - ✔✔✔ Correct Answer > Events
that existed at the balance sheet date
What is a type II subsequent event? - ✔✔✔ Correct Answer > Events
that did not exist at the balance sheet date, but may require disclosure
Who signs the management representation letter? - ✔✔✔ Correct
Answer > CEO and CFO
To whom would an audit team communicate difficulties in performing
an audit? - ✔✔✔ Correct Answer > The Audit Committee
The auditor notified the client to make appropriate and timely
disclosures of new material facts, but the client did not cooperate.
What should the auditor do next? - ✔✔✔ Correct Answer > Notify
the client and any regulatory agency with jurisdiction over the client
that the audit report should no longer be associated with the client's
financial statements
Which statement would be included in a management representation
letter? - ✔✔✔ Correct Answer > "The effects of uncorrected
misstatements are immaterial, both individually and in the aggregate."
What is Positive Assurance? - ✔✔✔ Correct Answer > An explicit
statement as to whether the financial statements are presented fairly
, and, for larger U.S. public companies, whether internal control over
financial reporting is effective.
Another term for Unqualified Opinion? - ✔✔✔ Correct Answer >
Unmodified Opinion
How does the PCAOB describe audit reporting? - ✔✔✔ Correct
Answer > The objective of the ordinary audit of financial statements by
the independent auditor is the expression of an opinion on the fairness
with which they present, in all material respects, financial position,
results of operations, and its cash flows in conformity with generally
accepted accounting principles. The auditor's report is the medium
through which he expresses his opinion or, if circumstances require,
disclaims an opinion.
How does the IAASB describe audit reporting? - ✔✔✔ Correct
Answer > To form an opinion on the financial statements based on an
evaluation of the conclusions drawn from the audit evidence obtained
What are the conditions to issue an unqualified report? - ✔✔✔
Correct Answer > No material violations of GAAP, disclosures are
accurate, all necessary procedures performed, no change in accounting
principles that had a material effect, no doubt of going concern, auditor
is independent.
