WGU D251 ADVANCED AUDITING
OBJECTIVE ASSESSMENT END OF COURSE
STUDY GUIDE LATEST UPDATED ACTUAL
TESTED QUESTIONS AND CORRECT
ANSWERS
⩥ Which materiality does an auditor use when determining whether the
financial statements overall are materially correct?
performance materiality
Specific materiality
planning materiality
Posting materiality.
Answer: performance materiality
⩥ What describes the misstatements identified throughout the audit that
will be considered at the end of the audit in determining whether the
financial
statements overall are materially correct?
,Posting materiality
Tolerable error
Overall materiality
Performance materiality.
Answer: Posting materiality
⩥ When materiality judgments change during the audit opinion
formulation process, what happens to previous audit decisions that were
based on
evidence obtained using the initial materiality setting?
The auditor repeats all audit procedures performed prior to the change in
the materiality judgments.
The auditor reassesses those previous audit decisions.
The auditor takes no action.
,The auditor modifies the audit opinion to note the change in the
materiality judgments..
Answer: The auditor reassesses those previous audit decisions.
⩥ Which factor would result in control risk being assessed at a higher
level?
Controls are well designed.
Accounting staff are well trained and educated.
There is a lack of supervision of accounting personnel.
The control environment is operating effectively..
Answer: There is a lack of supervision of accounting personnel.
⩥ Which technique is used to analyze year-to-year comparisons of
account balances?
Trend analysis
Ratio analysis
, Variance analysis
Reasonableness test.
Answer: Trend analysis
⩥ Which term describes the numerical depiction of the relationship
between control risk, inherent risk, and detection risk?
Risk assessment process
Risk of material misstatement
Data modeling
Audit risk model.
Answer: Audit risk model
⩥ Which risk factor suggests a heightened level of risk of material
misstatement?
Having key personnel of a company depart
OBJECTIVE ASSESSMENT END OF COURSE
STUDY GUIDE LATEST UPDATED ACTUAL
TESTED QUESTIONS AND CORRECT
ANSWERS
⩥ Which materiality does an auditor use when determining whether the
financial statements overall are materially correct?
performance materiality
Specific materiality
planning materiality
Posting materiality.
Answer: performance materiality
⩥ What describes the misstatements identified throughout the audit that
will be considered at the end of the audit in determining whether the
financial
statements overall are materially correct?
,Posting materiality
Tolerable error
Overall materiality
Performance materiality.
Answer: Posting materiality
⩥ When materiality judgments change during the audit opinion
formulation process, what happens to previous audit decisions that were
based on
evidence obtained using the initial materiality setting?
The auditor repeats all audit procedures performed prior to the change in
the materiality judgments.
The auditor reassesses those previous audit decisions.
The auditor takes no action.
,The auditor modifies the audit opinion to note the change in the
materiality judgments..
Answer: The auditor reassesses those previous audit decisions.
⩥ Which factor would result in control risk being assessed at a higher
level?
Controls are well designed.
Accounting staff are well trained and educated.
There is a lack of supervision of accounting personnel.
The control environment is operating effectively..
Answer: There is a lack of supervision of accounting personnel.
⩥ Which technique is used to analyze year-to-year comparisons of
account balances?
Trend analysis
Ratio analysis
, Variance analysis
Reasonableness test.
Answer: Trend analysis
⩥ Which term describes the numerical depiction of the relationship
between control risk, inherent risk, and detection risk?
Risk assessment process
Risk of material misstatement
Data modeling
Audit risk model.
Answer: Audit risk model
⩥ Which risk factor suggests a heightened level of risk of material
misstatement?
Having key personnel of a company depart
