WGU D251 | UPDATED Questions with 100% Verified Answers
Question:
Performance materiality
Answer:
What is the materiality level that an auditor uses for determining significant accounts,
significant locations, and audit procedures for those accounts and locations?
Question:
The auditor should perform additional substantive audit
procedures
Answer:
An auditor has determined performance materiality has been set too high at the
beginning of the audit. Which procedures should this auditor consider to detect
misstatements?
Question:
Risk of material misstatement
Answer:
Which risk exists at the overall financial statement level and at the assertion level and can
be categorized as involving inherent risk and control risk?
Question:
Significant risk
Answer:
What represents an identified and assessed risk of material misstatement that requires
special audit consideration?
Question:
The acceptable audit risk is reduced.
Answer:
What is the impact on the amount of acceptable audit risk if an auditor believes the
chance of financial failure of a client is high?
, Question:
The account balance consists of a large number of complex
transactions.
Answer:
Which factor should lead an auditor to assess inherent risk as high?
Question:
The client's use of information technology is incompatible
across systems and processes.
Answer:
Which factor would lead an auditor to assess client business risk at a higher level?
Question:
75% of $500,000
Answer:
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?
Question:
5% of planning materiality
Answer:
At which percentage do auditors commonly set posting materiality?
Question:
Determining whether the upper limit of the possible deviation
rate exceeds the tolerable deviation rate
Answer:
What is quantitative evaluation?
Question:
When the total estimated misstatement exceeds the tolerable
misstatement
Question:
Performance materiality
Answer:
What is the materiality level that an auditor uses for determining significant accounts,
significant locations, and audit procedures for those accounts and locations?
Question:
The auditor should perform additional substantive audit
procedures
Answer:
An auditor has determined performance materiality has been set too high at the
beginning of the audit. Which procedures should this auditor consider to detect
misstatements?
Question:
Risk of material misstatement
Answer:
Which risk exists at the overall financial statement level and at the assertion level and can
be categorized as involving inherent risk and control risk?
Question:
Significant risk
Answer:
What represents an identified and assessed risk of material misstatement that requires
special audit consideration?
Question:
The acceptable audit risk is reduced.
Answer:
What is the impact on the amount of acceptable audit risk if an auditor believes the
chance of financial failure of a client is high?
, Question:
The account balance consists of a large number of complex
transactions.
Answer:
Which factor should lead an auditor to assess inherent risk as high?
Question:
The client's use of information technology is incompatible
across systems and processes.
Answer:
Which factor would lead an auditor to assess client business risk at a higher level?
Question:
75% of $500,000
Answer:
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?
Question:
5% of planning materiality
Answer:
At which percentage do auditors commonly set posting materiality?
Question:
Determining whether the upper limit of the possible deviation
rate exceeds the tolerable deviation rate
Answer:
What is quantitative evaluation?
Question:
When the total estimated misstatement exceeds the tolerable
misstatement
