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WGU D251 ADAVANCED AUDITING OBJECTIVE
ASSESSMENT EXAM LATEST 2026 ACTUAL VERIFIED
EXAM WITH COMPLETE QUESTIONS AND CORRECT
DETAILED ANSWERS (100% VERIFIED ANSWERS)
|ALREADY GRADED A+| ||NEWEST EXAM!!!||
An auditor determines 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? - Answer-75% of $500,000
At which percentage do auditors commonly set posting
materiality? - Answer-5% of planning materiality
What is Client Business Risk? - Answer-Risks affecting the
business operations and potential outcomes of an
organization's activities.
What does the Risk of Material Misstatement represent? -
Answer-The Inherent and Control Risks
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Who controls the Risk of Material Misstatement? - Answer-
The Client
What happens to Detection and Audit Risk when Risk of
Material Misstatement is high? - Answer-Detection Risk is
lowered to reduce the Audit Risk to an acceptable level.
What is Inherent Risk? - Answer-The likelihood of material
misstatement without considering the effects of internal
control
What is Control Risk? - Answer-The risk of a misstatement
occurring or not being prevented by internal controls
What is audit risk? - Answer-The risk that the auditor
expresses an inappropriate audit opinion when the
financial statements are materially misstated.
What is detection risk? - Answer-Risk that the auditors'
procedures will lead them to conclude that a material
misstatement does not exist in an assertion when in fact
such misstatement does exist.
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What is the audit risk model? - Answer-Audit Risk =
Inherent Risk x Control Risk x Detection Risk
What is engagement risk? - Answer-Risk of potential for
loss to the auditor because of being associated with the
client.
What is the relationship between Audit Risk and
Engagement Risk? - Answer-Inverse
Performance Materiality is also known as _____________.
- Answer-Tolerable Error
Auditor uses Performance Materiality for ____________. -
Answer-Determining significant accounts, locations, and
audit procedures.
Performance Materiality is what percent of Planning
Materiality? - Answer-75%
What happens is Performance Materiality is set too high? -
Answer-Auditor might not perform sufficient procedures to
detect material misstatements.
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What happens if Performance Materiality is set too low? -
Answer-Auditor might perform more substantive
procedures than needed.
Overall Materiality is also known as _________. - Answer-
Planning Materiality
Auditors use Overall Materiality to ___________. -
Answer-Determine whether financial statements overall
are materially correct.
What does Posting Materiality signify? - Answer-The
misstatements identified throughout the audit that will be
considered at the end of the audit in determining whether
the financial statements are materially correct.
What percentage is Posting Materiality commonly set at? -
Answer-5% of Planning Materiality
What is Materiality? - Answer-The magnitude of an
omission or misstatement of accounting information that,
in light of surrounding circumstances, makes it probable
that the judgment of a reasonable person relying on the
WGU D251 ADAVANCED AUDITING OBJECTIVE
ASSESSMENT EXAM LATEST 2026 ACTUAL VERIFIED
EXAM WITH COMPLETE QUESTIONS AND CORRECT
DETAILED ANSWERS (100% VERIFIED ANSWERS)
|ALREADY GRADED A+| ||NEWEST EXAM!!!||
An auditor determines 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? - Answer-75% of $500,000
At which percentage do auditors commonly set posting
materiality? - Answer-5% of planning materiality
What is Client Business Risk? - Answer-Risks affecting the
business operations and potential outcomes of an
organization's activities.
What does the Risk of Material Misstatement represent? -
Answer-The Inherent and Control Risks
,2|Page
Who controls the Risk of Material Misstatement? - Answer-
The Client
What happens to Detection and Audit Risk when Risk of
Material Misstatement is high? - Answer-Detection Risk is
lowered to reduce the Audit Risk to an acceptable level.
What is Inherent Risk? - Answer-The likelihood of material
misstatement without considering the effects of internal
control
What is Control Risk? - Answer-The risk of a misstatement
occurring or not being prevented by internal controls
What is audit risk? - Answer-The risk that the auditor
expresses an inappropriate audit opinion when the
financial statements are materially misstated.
What is detection risk? - Answer-Risk that the auditors'
procedures will lead them to conclude that a material
misstatement does not exist in an assertion when in fact
such misstatement does exist.
,3|Page
What is the audit risk model? - Answer-Audit Risk =
Inherent Risk x Control Risk x Detection Risk
What is engagement risk? - Answer-Risk of potential for
loss to the auditor because of being associated with the
client.
What is the relationship between Audit Risk and
Engagement Risk? - Answer-Inverse
Performance Materiality is also known as _____________.
- Answer-Tolerable Error
Auditor uses Performance Materiality for ____________. -
Answer-Determining significant accounts, locations, and
audit procedures.
Performance Materiality is what percent of Planning
Materiality? - Answer-75%
What happens is Performance Materiality is set too high? -
Answer-Auditor might not perform sufficient procedures to
detect material misstatements.
, 4|Page
What happens if Performance Materiality is set too low? -
Answer-Auditor might perform more substantive
procedures than needed.
Overall Materiality is also known as _________. - Answer-
Planning Materiality
Auditors use Overall Materiality to ___________. -
Answer-Determine whether financial statements overall
are materially correct.
What does Posting Materiality signify? - Answer-The
misstatements identified throughout the audit that will be
considered at the end of the audit in determining whether
the financial statements are materially correct.
What percentage is Posting Materiality commonly set at? -
Answer-5% of Planning Materiality
What is Materiality? - Answer-The magnitude of an
omission or misstatement of accounting information that,
in light of surrounding circumstances, makes it probable
that the judgment of a reasonable person relying on the
