D215 Auditing WGU All Chapter Quizzes 336
QUESTION AND ANSWER 2025-2026
Western Governors University
QUESTINS CORRECT 336
Your answers
1 of 336
Term
Module 3-LO2.7- Evaluate the ethical behavior needed to comply
with other rules of conduct for members in public practice.
Thom is a new member of the audit team. In working on his first audit
engagement, he and his supervisor disagreed, materially, on the
amount that the client should report for warranty liability. The
auditing firm has a policy for this situation in which both auditors
document their opinions and the rationale behind them.
,This is an example of following which of the aspects of the integrity
and objectivity rule?
Give this one a try later!
self interest familiarity
undue influence subordinating judgment
Don't know?
2 of 336
Term
An auditor is tasked with testing the existence of accounts
receivable on a client's balance sheet. The audit team decides that
probability proportionate to size sampling (PPS) will be used. In
applying PPS, the auditor determines that the upper misstatement
limit is $40,000, the tolerable misstatement is $45,000, and the
projected misstatement is $35,000.
Which quantitative audit conclusion should be made?
Give this one a try later!
Since the upper misstatement limit is Since the upper misstatement
less than the tolerable limit is less than the tolerable
misstatement, the accounts misstatement, the accounts
receivable balance is considered receivable balance is
materially misstated. considered fairly stated.
, Since the tolerable misstatement is Since the tolerable misstatement is
more than the projected more than the projected
misstatement, additional testing misstatement, additional testing
needs to be performed. does not need to be performed.
Don't know?
3 of 336
Term
Module 4-LO3.1-Identify the different phases of an audit.
The risk assessment phase of an audit includes:
Give this one a try later!
writing the report on internal
preparation of the auditor's report.
controls.
gaining an understanding of
audit execution.
the client.
Don't know?
4 of 336
Term
Module 9-LO7.2-Identify the different types of controls that an
auditor might encounter.
, IT General Controls (ITGCs) are important because they:
Give this one a try later!
prevent unauthorized
prevent the reliability of electronic
personnel from having access
audit evidence.
to data and applications.
allow client staff to change
impact the effectiveness of manual programs without needing to
controls. receive authorization for the
change.
Don't know?
5 of 336
Term
Module 10-LO7.4-Determine how to design tests of controls.
John is preparing for an integrated audit of Utilhill, Inc. John will
need to issue an opinion on the financial statements and on the
internal controls over financial reporting (ICFR).
Which of the following is correct in relation to the approach John
should use and the report John should write?
Give this one a try later!
QUESTION AND ANSWER 2025-2026
Western Governors University
QUESTINS CORRECT 336
Your answers
1 of 336
Term
Module 3-LO2.7- Evaluate the ethical behavior needed to comply
with other rules of conduct for members in public practice.
Thom is a new member of the audit team. In working on his first audit
engagement, he and his supervisor disagreed, materially, on the
amount that the client should report for warranty liability. The
auditing firm has a policy for this situation in which both auditors
document their opinions and the rationale behind them.
,This is an example of following which of the aspects of the integrity
and objectivity rule?
Give this one a try later!
self interest familiarity
undue influence subordinating judgment
Don't know?
2 of 336
Term
An auditor is tasked with testing the existence of accounts
receivable on a client's balance sheet. The audit team decides that
probability proportionate to size sampling (PPS) will be used. In
applying PPS, the auditor determines that the upper misstatement
limit is $40,000, the tolerable misstatement is $45,000, and the
projected misstatement is $35,000.
Which quantitative audit conclusion should be made?
Give this one a try later!
Since the upper misstatement limit is Since the upper misstatement
less than the tolerable limit is less than the tolerable
misstatement, the accounts misstatement, the accounts
receivable balance is considered receivable balance is
materially misstated. considered fairly stated.
, Since the tolerable misstatement is Since the tolerable misstatement is
more than the projected more than the projected
misstatement, additional testing misstatement, additional testing
needs to be performed. does not need to be performed.
Don't know?
3 of 336
Term
Module 4-LO3.1-Identify the different phases of an audit.
The risk assessment phase of an audit includes:
Give this one a try later!
writing the report on internal
preparation of the auditor's report.
controls.
gaining an understanding of
audit execution.
the client.
Don't know?
4 of 336
Term
Module 9-LO7.2-Identify the different types of controls that an
auditor might encounter.
, IT General Controls (ITGCs) are important because they:
Give this one a try later!
prevent unauthorized
prevent the reliability of electronic
personnel from having access
audit evidence.
to data and applications.
allow client staff to change
impact the effectiveness of manual programs without needing to
controls. receive authorization for the
change.
Don't know?
5 of 336
Term
Module 10-LO7.4-Determine how to design tests of controls.
John is preparing for an integrated audit of Utilhill, Inc. John will
need to issue an opinion on the financial statements and on the
internal controls over financial reporting (ICFR).
Which of the following is correct in relation to the approach John
should use and the report John should write?
Give this one a try later!
