WGU D251 Advanced Auditing – Questions With
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Terms in this set (142)
Which phrase or term regarding significantly altered the total mix of information
materiality is used by the Supreme available
Court of the United States and is not
found in FASB Concepts Statements
No. 2
in light of surrounding circumstances
significantly altered the total mix of
information available
magnitude of an omission or
misstatement
probable that the judgment of a
reasonable person
Which materiality does an auditor use performance materiality
when determining whether the
financial statements overall are
materially correct?
performance materiality
Specific materiality
planning materiality
Posting materiality
,What describes the misstatements Posting materiality
identified throughout the audit that
will be considered at the end of the
audit in determining whether the
financial
statements overall are materially
correct?
Posting materiality
Tolerable error
Overall materiality
Performance materiality
When materiality judgments change The auditor reassesses those previous audit
during the audit opinion formulation decisions.
process, what happens to previous
audit decisions that were based on
evidence obtained using the initial
materiality setting?
The auditor repeats all audit
procedures performed prior to the
change in the materiality judgments.
The auditor reassesses those previous
audit decisions.
The auditor takes no action.
The auditor modifies the audit opinion
to note the change in the materiality
judgments.
,Which factor would result in control There is a lack of supervision of accounting
risk being assessed at a higher level? personnel.
Controls are well designed.
Accounting staff are well trained and
educated.
There is a lack of supervision of
accounting personnel.
The control environment is operating
effectively.
Which technique is used to analyze Trend analysis
year-to-year comparisons of account
balances?
Trend analysis
Ratio analysis
Variance analysis
Reasonableness test
Which term describes the numerical Audit risk model
depiction of the relationship between
control risk, inherent risk, and
detection risk?
Risk assessment process
Risk of material misstatement
Data modeling
Audit risk model
, Which risk factor suggests a Having key personnel of a company depart
heightened level of risk of material
misstatement?
Having key personnel of a company
depart
Having a stable product
Declining a merger with another
company
Having few immaterial related-party
transactions
What is the relationship between the Inverse
risk of material misstatement and audit
risk?
Correlational
Direct
None
Inverse
What is the typical range for the 1% to 5%
setting of audit risk?
0% to 5%
0% to 10%
1% to 10%
1% to 5%
Guaranteed Solutions
Save
Terms in this set (142)
Which phrase or term regarding significantly altered the total mix of information
materiality is used by the Supreme available
Court of the United States and is not
found in FASB Concepts Statements
No. 2
in light of surrounding circumstances
significantly altered the total mix of
information available
magnitude of an omission or
misstatement
probable that the judgment of a
reasonable person
Which materiality does an auditor use performance materiality
when determining whether the
financial statements overall are
materially correct?
performance materiality
Specific materiality
planning materiality
Posting materiality
,What describes the misstatements Posting materiality
identified throughout the audit that
will be considered at the end of the
audit in determining whether the
financial
statements overall are materially
correct?
Posting materiality
Tolerable error
Overall materiality
Performance materiality
When materiality judgments change The auditor reassesses those previous audit
during the audit opinion formulation decisions.
process, what happens to previous
audit decisions that were based on
evidence obtained using the initial
materiality setting?
The auditor repeats all audit
procedures performed prior to the
change in the materiality judgments.
The auditor reassesses those previous
audit decisions.
The auditor takes no action.
The auditor modifies the audit opinion
to note the change in the materiality
judgments.
,Which factor would result in control There is a lack of supervision of accounting
risk being assessed at a higher level? personnel.
Controls are well designed.
Accounting staff are well trained and
educated.
There is a lack of supervision of
accounting personnel.
The control environment is operating
effectively.
Which technique is used to analyze Trend analysis
year-to-year comparisons of account
balances?
Trend analysis
Ratio analysis
Variance analysis
Reasonableness test
Which term describes the numerical Audit risk model
depiction of the relationship between
control risk, inherent risk, and
detection risk?
Risk assessment process
Risk of material misstatement
Data modeling
Audit risk model
, Which risk factor suggests a Having key personnel of a company depart
heightened level of risk of material
misstatement?
Having key personnel of a company
depart
Having a stable product
Declining a merger with another
company
Having few immaterial related-party
transactions
What is the relationship between the Inverse
risk of material misstatement and audit
risk?
Correlational
Direct
None
Inverse
What is the typical range for the 1% to 5%
setting of audit risk?
0% to 5%
0% to 10%
1% to 10%
1% to 5%
