WGU D215 EXAM SCRIPT AUDITING
QUESTIONS AND CORRECT ANSWERS
GRADED A+
◉ A company begins to use a new accounts payable computer
system and then realizes a critical data field present in the old
system is missing in the new system. Which type of risk is present
for this company?
Control
Inherent
Financial
Detection
Answer: Control
◉ During a yearly audit, the audit team becomes aware of the
company's pressure to increase next year's profit. Which factor
should the audit team be on the lookout for in the near future?
Accruals for subsequent year sales in the current year
Disposals of inventory during the week before the current year-
end
Payroll expenses incurred the month after the year-end and
recorded in the last month of the year
,Sales commissions paid to staff incurred during the last week of
the year and not recorded in the current year
Answer: Payroll expenses incurred the month after the year-end
and recorded in the last month of the year
◉ Which management assertion states that financial and other
information are disclosed fairly and in appropriate amounts?
Completeness
Accuracy and valuation
Classification and understandability
Occurrence and rights and obligations
Answer: Accuracy and valuation
◉ Which factor describes sufficiency of audit evidence gathered?
Quantity of evidence
Documentation of evidence
How the evidence was obtained
When the evidence was obtained
Answer: Quantity of evidence
◉ Which combination of assessed inherent risk and control risk
will require the greatest amount of sufficient evidence?
, Low inherent risk, low control risk
High inherent risk, low control risk
Low inherent risk, high control risk
High inherent risk, high control risk
Answer: High inherent risk, high control risk
◉ Which type of procedure is being performed when an auditor
selects transactions from a sales journal or ledger and then
examines the underlying source documents?
Tracing
Vouching
Observing
Journaling
Answer:
◉ Which dimension of the COSO framework identifies five
integrated items of internal control?
Objectives
Components
Information technology
Organizational structure
QUESTIONS AND CORRECT ANSWERS
GRADED A+
◉ A company begins to use a new accounts payable computer
system and then realizes a critical data field present in the old
system is missing in the new system. Which type of risk is present
for this company?
Control
Inherent
Financial
Detection
Answer: Control
◉ During a yearly audit, the audit team becomes aware of the
company's pressure to increase next year's profit. Which factor
should the audit team be on the lookout for in the near future?
Accruals for subsequent year sales in the current year
Disposals of inventory during the week before the current year-
end
Payroll expenses incurred the month after the year-end and
recorded in the last month of the year
,Sales commissions paid to staff incurred during the last week of
the year and not recorded in the current year
Answer: Payroll expenses incurred the month after the year-end
and recorded in the last month of the year
◉ Which management assertion states that financial and other
information are disclosed fairly and in appropriate amounts?
Completeness
Accuracy and valuation
Classification and understandability
Occurrence and rights and obligations
Answer: Accuracy and valuation
◉ Which factor describes sufficiency of audit evidence gathered?
Quantity of evidence
Documentation of evidence
How the evidence was obtained
When the evidence was obtained
Answer: Quantity of evidence
◉ Which combination of assessed inherent risk and control risk
will require the greatest amount of sufficient evidence?
, Low inherent risk, low control risk
High inherent risk, low control risk
Low inherent risk, high control risk
High inherent risk, high control risk
Answer: High inherent risk, high control risk
◉ Which type of procedure is being performed when an auditor
selects transactions from a sales journal or ledger and then
examines the underlying source documents?
Tracing
Vouching
Observing
Journaling
Answer:
◉ Which dimension of the COSO framework identifies five
integrated items of internal control?
Objectives
Components
Information technology
Organizational structure
