WGU D251 Exam Most Recent Exam 2026-2027 Actual
Complete Real Exam Questions And Correct Answers
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When do generally accepted accounting principles (GAAP)
require a client to only disclose a contingent loss that might
occur, and either an accrual has not been made or an exposure
exists that is greater than the amount accrued? - ANSWER -
When the loss contingency is reasonably possible
A client made a decision to discontinue a major line of
business after the balance sheet date.How should an auditor
treat this type of subsequent event? - ANSWER -Disclose the
information in the notes to the financial statements
Who is responsible for designing and maintaining policies and
procedures to identify, evaluate, and account for loss
contingencies in accordance with generally accepted
accounting principles (GAAP)? - ANSWER -Management
Which procedures help an auditor form an overall conclusion
about whether financial statements are consistent with the
auditor's understanding of an entity? - ANSWER -Review
analytical procedures
, What is a risk-based review in which a reviewer evaluates the
significant judgments and conclusions made by an audit team?
- ANSWER -Engagement quality review
Which circumstance involves acts of omission or commission
by an entity, either
intentional or unintentional, which are contrary to the
prevailing laws or
regulations? - ANSWER –
Noncompliance
How should an auditor respond to a client's claim that a
financial statement estimate is at least as good as the auditor's
estimate? - ANSWER -The auditor should gather sufficient
evidence related to the estimate.
What is the major difference between a Type I subsequent
event and a Type II subsequent event? - ANSWER -The financial
statements should be adjusted to reflect Type I subsequent
events.
What is the difference between Type 1 and Type 2 subsequent
Events? - ANSWER -Type I subsequent events provide
evidence about conditions that existed on or before the balance
sheet date. These events are recognized in the financial
statements. Type II subsequent events provide evidence about
conditions that did not exist on or before the balance sheet
date.
Complete Real Exam Questions And Correct Answers
(Verified Answers) Already Graded A+ | Guaranteed
Success!! | Newest Exam | Just Released!!
When do generally accepted accounting principles (GAAP)
require a client to only disclose a contingent loss that might
occur, and either an accrual has not been made or an exposure
exists that is greater than the amount accrued? - ANSWER -
When the loss contingency is reasonably possible
A client made a decision to discontinue a major line of
business after the balance sheet date.How should an auditor
treat this type of subsequent event? - ANSWER -Disclose the
information in the notes to the financial statements
Who is responsible for designing and maintaining policies and
procedures to identify, evaluate, and account for loss
contingencies in accordance with generally accepted
accounting principles (GAAP)? - ANSWER -Management
Which procedures help an auditor form an overall conclusion
about whether financial statements are consistent with the
auditor's understanding of an entity? - ANSWER -Review
analytical procedures
, What is a risk-based review in which a reviewer evaluates the
significant judgments and conclusions made by an audit team?
- ANSWER -Engagement quality review
Which circumstance involves acts of omission or commission
by an entity, either
intentional or unintentional, which are contrary to the
prevailing laws or
regulations? - ANSWER –
Noncompliance
How should an auditor respond to a client's claim that a
financial statement estimate is at least as good as the auditor's
estimate? - ANSWER -The auditor should gather sufficient
evidence related to the estimate.
What is the major difference between a Type I subsequent
event and a Type II subsequent event? - ANSWER -The financial
statements should be adjusted to reflect Type I subsequent
events.
What is the difference between Type 1 and Type 2 subsequent
Events? - ANSWER -Type I subsequent events provide
evidence about conditions that existed on or before the balance
sheet date. These events are recognized in the financial
statements. Type II subsequent events provide evidence about
conditions that did not exist on or before the balance sheet
date.
