WGU D251 ADVANCED AUDITING EXAM
WITH VERIFIED QUESTIONS AND ANSWERS||
ALREADY GRADED A+|| GUARANTEED PASS||
LATEST VERSION 2025
What is supply chain management? - ANSWER-Management and control of
materials in the logistics process from the acquisition of raw materials to the
delivery of finished products to the end user (customer)
What is an Automated Purchasing System? - ANSWER-A networked software
system linking to vendors whose offerings and prices supply chain management
personnel have preapproved
What tasks does the automated purchasing system perform? - ANSWER-Apply
preloaded specifications and materials list, automatically flag invoices that do
not reconcile with POs, Create change orders and analyze variances from POs
What are the 5 management assertions relevant to Inventory and Accounts
Payable? - ANSWER-1. Existence/Occurence
2. Completeness
3. Rights and Obligations
4. Valuation or allocation
5. Presentation and disclosure
Existence/Occurence relevant to Inventory - ANSWER-Inventory balances exist
at the balance sheet date
,Completeness relevant to Inventory - ANSWER-Inventory balances include all
inventory transactions that have taken place during the period
Right and Obligations relevant to Inventory - ANSWER-The organization has
title to the inventory as of the balance sheet date.
What is an Attribute? - ANSWER-A characteristic of a population of interest to
the auditor
What is a misstatement? - ANSWER-A dollar amount of misstatement, either
intentional or unintentional, that exists in a transaction or financial statement
account balance. Differences between recorded values and audited values.
What is a Factual Misstatement? - ANSWER-Misstatement about which there is
no doubt
What is another term for Factual Misstatements? - ANSWER-Known
Misstatements
What is a Projected Misstatement? - ANSWER-Those that are the auditor's best
estimate of the misstatements in a given population based on the sample results.
What is another term for Projected Misstatements? - ANSWER-Likely
Misstatements
What is a Tolerable Misstatement? - ANSWER-The maximum amount of
misstatement the auditor can accept in the population without requiring an audit
adjustment or a qualified audit opinion.
, What is an Expected Misstatement? - ANSWER-The level of misstatement that
the auditor expects to detect
What is the Top Stratum? - ANSWER-Population items whose book values
exceed the sampling interval and are therefore included in the sample.
What is the Lower Stratum? - ANSWER-Items not in the Top Stratum
What is Stratification? - ANSWER-Dividing a population into groups which
increases efficiency
Probability-Proportional-to-Size (PPS) Sampling - ANSWER-A method of
sample selection where the probability of an item's selection for the sample is
proportional to its recorded amount
What is Basic Precision? - ANSWER-The amount of error you are confident of
not exceeding if no errors are detected in the sample.
What is the Incremental Allowance for Sampling Risk? - ANSWER-An
increase in the total estimated misstatement caused by the statistical properties
of misstatements detected in the lower stratum.
What is the tainting percentage? - ANSWER-The amount of misstatement in the
item divided by the item's recorded amount.
Which action must an auditor take after discovering an illegal act during an
audit of a publicly traded company? - ANSWER-Alert management and the
audit committee, even if the act is immaterial
WITH VERIFIED QUESTIONS AND ANSWERS||
ALREADY GRADED A+|| GUARANTEED PASS||
LATEST VERSION 2025
What is supply chain management? - ANSWER-Management and control of
materials in the logistics process from the acquisition of raw materials to the
delivery of finished products to the end user (customer)
What is an Automated Purchasing System? - ANSWER-A networked software
system linking to vendors whose offerings and prices supply chain management
personnel have preapproved
What tasks does the automated purchasing system perform? - ANSWER-Apply
preloaded specifications and materials list, automatically flag invoices that do
not reconcile with POs, Create change orders and analyze variances from POs
What are the 5 management assertions relevant to Inventory and Accounts
Payable? - ANSWER-1. Existence/Occurence
2. Completeness
3. Rights and Obligations
4. Valuation or allocation
5. Presentation and disclosure
Existence/Occurence relevant to Inventory - ANSWER-Inventory balances exist
at the balance sheet date
,Completeness relevant to Inventory - ANSWER-Inventory balances include all
inventory transactions that have taken place during the period
Right and Obligations relevant to Inventory - ANSWER-The organization has
title to the inventory as of the balance sheet date.
What is an Attribute? - ANSWER-A characteristic of a population of interest to
the auditor
What is a misstatement? - ANSWER-A dollar amount of misstatement, either
intentional or unintentional, that exists in a transaction or financial statement
account balance. Differences between recorded values and audited values.
What is a Factual Misstatement? - ANSWER-Misstatement about which there is
no doubt
What is another term for Factual Misstatements? - ANSWER-Known
Misstatements
What is a Projected Misstatement? - ANSWER-Those that are the auditor's best
estimate of the misstatements in a given population based on the sample results.
What is another term for Projected Misstatements? - ANSWER-Likely
Misstatements
What is a Tolerable Misstatement? - ANSWER-The maximum amount of
misstatement the auditor can accept in the population without requiring an audit
adjustment or a qualified audit opinion.
, What is an Expected Misstatement? - ANSWER-The level of misstatement that
the auditor expects to detect
What is the Top Stratum? - ANSWER-Population items whose book values
exceed the sampling interval and are therefore included in the sample.
What is the Lower Stratum? - ANSWER-Items not in the Top Stratum
What is Stratification? - ANSWER-Dividing a population into groups which
increases efficiency
Probability-Proportional-to-Size (PPS) Sampling - ANSWER-A method of
sample selection where the probability of an item's selection for the sample is
proportional to its recorded amount
What is Basic Precision? - ANSWER-The amount of error you are confident of
not exceeding if no errors are detected in the sample.
What is the Incremental Allowance for Sampling Risk? - ANSWER-An
increase in the total estimated misstatement caused by the statistical properties
of misstatements detected in the lower stratum.
What is the tainting percentage? - ANSWER-The amount of misstatement in the
item divided by the item's recorded amount.
Which action must an auditor take after discovering an illegal act during an
audit of a publicly traded company? - ANSWER-Alert management and the
audit committee, even if the act is immaterial
