WGU D251 - Advanced Auditing Exam 2024 Questions and Answers 100% Correct!

Which phrase or term regarding materiality is used by the Supreme Court of the United States, and is NOT found in FASB Concepts Statements No. 2? - ANSWER-Significantly altered the total mix of information available. Which materiality does an auditor use when determining whether the financial statements overall are materially correct? - ANSWER-Planning Materiality. Planning= Overall 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? - ANSWER-Posting Materiality - Considered when coming to the close, or POSTING of the audit. When materiality judgements change during the audit opinion formulation process, what happens to previous audit decisions that were based on evidence obtained using the initial materiality setting? - ANSWER-The auditor reassesses those previous audit decisions. Which factor would result in control risk being assessed at a higher level? - ANSWER-There is a lack of supervision of accounting personnel. Which technique is used to analyze year-to-year comparisons of account balances? - ANSWER-Trend Analysis Which terms describes the numerical depiction of the relationship between control risk, inherent risk, and detection risk? - ANSWER-Audit Risk Model Which risk factor suggests a heightened level of risk of material misstatement? - ANSWER-Having key personnel of a company depart. What is the relationship between the risk of material misstatement and audit risk? - ANSWER-Inverse What is the typical range for the setting of audit risk? - ANSWER-1% to 5% Which risk result would likely be achieved from using a 1% level of detection risk? - ANSWER-A low detection risk and a low audit risk. Which tests are eliminated when an auditor chooses not to rely on a client's internal