PA D251, WGU - D251 Advanced Auditing, Unit 6 - D251
Advanced Auditing UPDATED ACTUAL Questions and
CORRECT Answers
What is materiality level that an auditor uses for d. Performance Materiality
determining significant accounts, significant locations,
and audit procedures for those accounts and locations?
a. Planning Materiality
b. Overall Materiality
c. Posting Materiality
d. Performance Materiality
An auditor has determined performance materiality has a. The auditor should perform additional substantive audit procedures
been set too high at the beginning of the audit. Which
procedures should this auditor consider to detect
misstatements?
a. The auditor should perform additional substantive audit
procedures
b. The auditor should perform additional control audit
procedures.
c. The auditor should perform fewer control audit
procedures
d. The auditor should perform fewer substantive
procedures
, Which risk exists at the overall financial statement level d. Risk of material misstatement
and at the assertion level and can be categorized as
involving inherent risk and control risk?
a. Client business risk
b. Auditor business risk
c. Engagement risk
d. Risk of material misstatement
What represents an identified and assessed risk of b. Significant risk
material misstatement that requires special audit
consideration?
a. Audit risk
b. Significant risk
c. Control risk
d. Inherent risk
What is the impact on the amount of acceptable audit risk b. The acceptable audit risk is reduced
if an auditor believes the chance of financial failure of a
client is high?
a. The acceptable audit risk is zero
b. The acceptable audit risk is reduced
c. The acceptable audit risk is increased
d. The acceptable audit risk remains the same
Which factor should lead an auditor to assess inherent b. The account balance consists of a large number of complex transactions
risk as high?
a. The account balance consists of a high volume of
routine transactions
b. The account balance consists of a large number of
complex transactions
c. The account balance is subject to a large number of
routine year-end adjustments
d. The account balance requires a high level of client
estimation, which the auditor has audited
Which factor would lead an auditor to assess client c. The client's use of information technology is incompatible across systems and
business risk at a higher level? processes
a. The overall business climate for the client appears to
be mixed for the foreseeable future
b. The client has hired somewhat experienced personnel
to deal with industry changes
c. The client's use of information technology is
incompatible across systems and processes
d. The client has developed technology-related
partnerships
Advanced Auditing UPDATED ACTUAL Questions and
CORRECT Answers
What is materiality level that an auditor uses for d. Performance Materiality
determining significant accounts, significant locations,
and audit procedures for those accounts and locations?
a. Planning Materiality
b. Overall Materiality
c. Posting Materiality
d. Performance Materiality
An auditor has determined performance materiality has a. The auditor should perform additional substantive audit procedures
been set too high at the beginning of the audit. Which
procedures should this auditor consider to detect
misstatements?
a. The auditor should perform additional substantive audit
procedures
b. The auditor should perform additional control audit
procedures.
c. The auditor should perform fewer control audit
procedures
d. The auditor should perform fewer substantive
procedures
, Which risk exists at the overall financial statement level d. Risk of material misstatement
and at the assertion level and can be categorized as
involving inherent risk and control risk?
a. Client business risk
b. Auditor business risk
c. Engagement risk
d. Risk of material misstatement
What represents an identified and assessed risk of b. Significant risk
material misstatement that requires special audit
consideration?
a. Audit risk
b. Significant risk
c. Control risk
d. Inherent risk
What is the impact on the amount of acceptable audit risk b. The acceptable audit risk is reduced
if an auditor believes the chance of financial failure of a
client is high?
a. The acceptable audit risk is zero
b. The acceptable audit risk is reduced
c. The acceptable audit risk is increased
d. The acceptable audit risk remains the same
Which factor should lead an auditor to assess inherent b. The account balance consists of a large number of complex transactions
risk as high?
a. The account balance consists of a high volume of
routine transactions
b. The account balance consists of a large number of
complex transactions
c. The account balance is subject to a large number of
routine year-end adjustments
d. The account balance requires a high level of client
estimation, which the auditor has audited
Which factor would lead an auditor to assess client c. The client's use of information technology is incompatible across systems and
business risk at a higher level? processes
a. The overall business climate for the client appears to
be mixed for the foreseeable future
b. The client has hired somewhat experienced personnel
to deal with industry changes
c. The client's use of information technology is
incompatible across systems and processes
d. The client has developed technology-related
partnerships
