WGU D251
[Document subtitle]
[DATE]
[COMPANY NAME]
[Company address]
, Certainly! Here are the questions numbered along with their answers:
1. **Performance materiality**
*What is the materiality level that an auditor uses for determining significant accounts,
significant locations, and audit procedures for those accounts and locations?*
**Answer:** Performance materiality is set at a level less than overall materiality to
reduce the risk that total misstatements exceed overall materiality.
2. **The auditor should perform additional substantive audit procedures**
*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?*
**Answer:** The auditor should perform additional substantive procedures.
3. **Risk of material misstatement**
*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?*
**Answer:** The risk of material misstatement.
4. **Significant risk**
*What represents an identified and assessed risk of material misstatement that requires
special audit consideration?*
**Answer:** Significant risk.
5. **The acceptable audit risk is reduced.**
*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?*
**Answer:** The acceptable audit risk is reduced.
6. **The account balance consists of a large number of complex transactions.**
[Document subtitle]
[DATE]
[COMPANY NAME]
[Company address]
, Certainly! Here are the questions numbered along with their answers:
1. **Performance materiality**
*What is the materiality level that an auditor uses for determining significant accounts,
significant locations, and audit procedures for those accounts and locations?*
**Answer:** Performance materiality is set at a level less than overall materiality to
reduce the risk that total misstatements exceed overall materiality.
2. **The auditor should perform additional substantive audit procedures**
*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?*
**Answer:** The auditor should perform additional substantive procedures.
3. **Risk of material misstatement**
*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?*
**Answer:** The risk of material misstatement.
4. **Significant risk**
*What represents an identified and assessed risk of material misstatement that requires
special audit consideration?*
**Answer:** Significant risk.
5. **The acceptable audit risk is reduced.**
*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?*
**Answer:** The acceptable audit risk is reduced.
6. **The account balance consists of a large number of complex transactions.**
