9/15/25, 10:36 AM WGU - D251 Advanced Auditing EXAM Questions and Answers (Verified Answers) (Latest Update 2025) UPDATE!! Flashcards | …
WGU - D251 Advanced Auditing EXAM Questions
and Answers (Verified Answers) (Latest Update
2025) UPDATE!!
Save
Terms in this set (249)
Performance Materiality is Tolerable Error
also known as _____________.
Auditor uses Performance Determining significant accounts, locations, and audit
Materiality for ____________. procedures.
Performance Materiality is 75%
what percent of Planning
Materiality?
What happens is Auditor might not perform sufficient procedures to
Performance Materiality is detect material misstatements.
set too high?
What happens if Auditor might perform more substantive procedures
Performance Materiality is than needed.
set too low?
Overall Materiality is also Planning Materiality
known as _________.
Auditors use Overall Determine whether financial statements overall are
Materiality to ___________. materially correct.
https://quizlet.com/1076525044/wgu-d251-advanced-auditing-exam-questions-and-answers-verified-answers-latest-update-2025-update-flash-cards/… 1/31
,9/15/25, 10:36 AM WGU - D251 Advanced Auditing EXAM Questions and Answers (Verified Answers) (Latest Update 2025) UPDATE!! Flashcards | …
The misstatements identified throughout the audit that
What does Posting will be considered at the end of the audit in
Materiality signify? determining whether the financial statements are
materially correct.
What percentage is 5% of Planning Materiality
Posting Materiality
commonly set at?
The magnitude of an omission or misstatement of
accounting information that, in light of surrounding
circumstances, makes it probable that the judgment of
What is Materiality?
a reasonable person relying on the information would
have been changed or influenced by the omission or
misstatement.
If there is a substantial likelihood that a reasonable
What makes a fact investor would have viewed the fact as having
Material? significantly altered the total mix of information made
available.
What is the materiality Performance Materiality
level that an auditor uses
for determining significant
accounts, significant
locations, and audit
procedures for those
accounts and locations?
An auditor has determined The auditor should perform additional substantive
performance materiality audit procedures.
has been set too high at
the beginning of the audit.
Which procedures should
this auditor consider to
detect misstatements?
https://quizlet.com/1076525044/wgu-d251-advanced-auditing-exam-questions-and-answers-verified-answers-latest-update-2025-update-flash-cards/… 2/31
,9/15/25, 10:36 AM WGU - D251 Advanced Auditing EXAM Questions and Answers (Verified Answers) (Latest Update 2025) UPDATE!! Flashcards | …
Which risk exists at the Risk of material misstatement
overall financial statement
level and at the assertion
level and can be
categorized as involving
inherent risk and control
risk?
What represents an Significant risk
identified and assessed
risk of material
misstatement that requires
special audit
consideration?
What is the impact on the The acceptable audit risk is reduced.
amount of acceptable
audit risk if an auditor
believes the chance of
financial failure of a client
is high?
Which factor should lead The account balance consists of a large number of
an auditor to assess complex transactions.
inherent risk as high?
Which factor would lead The client's use of information technology is
an auditor to assess client incompatible across systems and processes.
business risk at a higher
level?
https://quizlet.com/1076525044/wgu-d251-advanced-auditing-exam-questions-and-answers-verified-answers-latest-update-2025-update-flash-cards/… 3/31
, 9/15/25, 10:36 AM WGU - D251 Advanced Auditing EXAM Questions and Answers (Verified Answers) (Latest Update 2025) UPDATE!! Flashcards | …
An auditor determines 75% of $500,000
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?
At which percentage do 5% of planning materiality
auditors commonly set
posting materiality?
What is Client Business Risks affecting the business operations and potential
Risk? outcomes of an organization's activities.
What does the Risk of The Inherent and Control Risks
Material Misstatement
represent?
Who controls the Risk of The Client
Material Misstatement?
What happens to Detection Risk is lowered to reduce the Audit Risk to
Detection and Audit Risk an acceptable level.
when Risk of Material
Misstatement is high?
The likelihood of material misstatement without
What is Inherent Risk?
considering the effects of internal control
The risk of a misstatement occurring or not being
What is Control Risk?
prevented by internal controls
The risk that the auditor expresses an inappropriate
What is audit risk? audit opinion when the financial statements are
materially misstated.
https://quizlet.com/1076525044/wgu-d251-advanced-auditing-exam-questions-and-answers-verified-answers-latest-update-2025-update-flash-cards/… 4/31
WGU - D251 Advanced Auditing EXAM Questions
and Answers (Verified Answers) (Latest Update
2025) UPDATE!!
Save
Terms in this set (249)
Performance Materiality is Tolerable Error
also known as _____________.
Auditor uses Performance Determining significant accounts, locations, and audit
Materiality for ____________. procedures.
Performance Materiality is 75%
what percent of Planning
Materiality?
What happens is Auditor might not perform sufficient procedures to
Performance Materiality is detect material misstatements.
set too high?
What happens if Auditor might perform more substantive procedures
Performance Materiality is than needed.
set too low?
Overall Materiality is also Planning Materiality
known as _________.
Auditors use Overall Determine whether financial statements overall are
Materiality to ___________. materially correct.
https://quizlet.com/1076525044/wgu-d251-advanced-auditing-exam-questions-and-answers-verified-answers-latest-update-2025-update-flash-cards/… 1/31
,9/15/25, 10:36 AM WGU - D251 Advanced Auditing EXAM Questions and Answers (Verified Answers) (Latest Update 2025) UPDATE!! Flashcards | …
The misstatements identified throughout the audit that
What does Posting will be considered at the end of the audit in
Materiality signify? determining whether the financial statements are
materially correct.
What percentage is 5% of Planning Materiality
Posting Materiality
commonly set at?
The magnitude of an omission or misstatement of
accounting information that, in light of surrounding
circumstances, makes it probable that the judgment of
What is Materiality?
a reasonable person relying on the information would
have been changed or influenced by the omission or
misstatement.
If there is a substantial likelihood that a reasonable
What makes a fact investor would have viewed the fact as having
Material? significantly altered the total mix of information made
available.
What is the materiality Performance Materiality
level that an auditor uses
for determining significant
accounts, significant
locations, and audit
procedures for those
accounts and locations?
An auditor has determined The auditor should perform additional substantive
performance materiality audit procedures.
has been set too high at
the beginning of the audit.
Which procedures should
this auditor consider to
detect misstatements?
https://quizlet.com/1076525044/wgu-d251-advanced-auditing-exam-questions-and-answers-verified-answers-latest-update-2025-update-flash-cards/… 2/31
,9/15/25, 10:36 AM WGU - D251 Advanced Auditing EXAM Questions and Answers (Verified Answers) (Latest Update 2025) UPDATE!! Flashcards | …
Which risk exists at the Risk of material misstatement
overall financial statement
level and at the assertion
level and can be
categorized as involving
inherent risk and control
risk?
What represents an Significant risk
identified and assessed
risk of material
misstatement that requires
special audit
consideration?
What is the impact on the The acceptable audit risk is reduced.
amount of acceptable
audit risk if an auditor
believes the chance of
financial failure of a client
is high?
Which factor should lead The account balance consists of a large number of
an auditor to assess complex transactions.
inherent risk as high?
Which factor would lead The client's use of information technology is
an auditor to assess client incompatible across systems and processes.
business risk at a higher
level?
https://quizlet.com/1076525044/wgu-d251-advanced-auditing-exam-questions-and-answers-verified-answers-latest-update-2025-update-flash-cards/… 3/31
, 9/15/25, 10:36 AM WGU - D251 Advanced Auditing EXAM Questions and Answers (Verified Answers) (Latest Update 2025) UPDATE!! Flashcards | …
An auditor determines 75% of $500,000
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?
At which percentage do 5% of planning materiality
auditors commonly set
posting materiality?
What is Client Business Risks affecting the business operations and potential
Risk? outcomes of an organization's activities.
What does the Risk of The Inherent and Control Risks
Material Misstatement
represent?
Who controls the Risk of The Client
Material Misstatement?
What happens to Detection Risk is lowered to reduce the Audit Risk to
Detection and Audit Risk an acceptable level.
when Risk of Material
Misstatement is high?
The likelihood of material misstatement without
What is Inherent Risk?
considering the effects of internal control
The risk of a misstatement occurring or not being
What is Control Risk?
prevented by internal controls
The risk that the auditor expresses an inappropriate
What is audit risk? audit opinion when the financial statements are
materially misstated.
https://quizlet.com/1076525044/wgu-d251-advanced-auditing-exam-questions-and-answers-verified-answers-latest-update-2025-update-flash-cards/… 4/31
