WGU D251 - ADVANCED AUDITING EXAM 2025 WITH
ACCURATE SOLUTIONS
1. Describe the significance of the completeness assertion in the context of
auditing accounts payable.
The completeness assertion verifies that recorded liabilities exist
and are accurate.
The completeness assertion ensures that all accounts payable
are recorded, preventing underreporting of liabilities.
The completeness assertion confirms that the company has rights
to its recorded assets.
The completeness assertion assesses the fair value of accounts
payable.
2. What term is used to describe the physical loss or theft of inventory in the
context of fraud schemes?
Fraudulent reporting
Shrinkage
Misappropriation
Embezzlement
3. If an auditor discovers instances of noncompliance during an audit, what
should be their immediate course of action?
Report the findings to the appropriate authorities and assess
the impact on the audit opinion.
Ignore the findings if they are unintentional.
Continue the audit without addressing the noncompliance.
,Only inform management without further action.
,4. Describe the significance of having a finance director approve large
revenue transactions in the context of auditing.
The finance director only approves transactions related to
expenses, not revenues.
The finance director's role is limited to budgeting and does not
involve transaction approvals.
The finance director's approval is unnecessary for small
transactions.
The finance director's approval ensures that complex
transactions are reviewed for accuracy and compliance with
internal controls and auditing standards.
5. What is the primary document an auditor must provide to management
and the audit committee before issuing the auditor's report on ICFR for
integrated audit clients?
A financial statement audit report
A risk assessment report
A compliance report
A report summarizing the quality of internal controls
6. What is the term used to describe a situation where management does
not provide necessary information during an audit?
Material misstatement
Internal control deficiency
Scope limitation
Management assertion
7. Describe the significance of individually important locations in the
context of an audit.
, Individually important locations are only significant for tax
purposes.
Individually important locations are irrelevant to the audit process.
Individually important locations only affect the internal controls of
a company.
Individually important locations are crucial because they
directly impact the overall financial statements of the client.
8. Describe the systematic sampling method used in attribute testing and its
significance in auditing.
Systematic sampling is a method where samples are chosen
based on auditor judgment, focusing on high-risk areas.
Systematic sampling is a technique that randomly selects items
without any specific order.
Systematic sampling requires selecting items based on their
monetary value to ensure high materiality levels.
Systematic sampling involves selecting every nth item after a
random start, which helps ensure a representative sample.
9. If an auditor determines that the performance materiality for a specific
audit is set too high, what might be a potential consequence?
The auditor will need to adjust the overall audit strategy.
The audit will be completed more quickly and efficiently.
The auditor will have to increase the sample size of transactions
tested.
The auditor may overlook significant misstatements in the
financial statements.
10. What is the primary management assertion related to the acquisition and
payment cycle that is verified by observing the client's annual physical
ACCURATE SOLUTIONS
1. Describe the significance of the completeness assertion in the context of
auditing accounts payable.
The completeness assertion verifies that recorded liabilities exist
and are accurate.
The completeness assertion ensures that all accounts payable
are recorded, preventing underreporting of liabilities.
The completeness assertion confirms that the company has rights
to its recorded assets.
The completeness assertion assesses the fair value of accounts
payable.
2. What term is used to describe the physical loss or theft of inventory in the
context of fraud schemes?
Fraudulent reporting
Shrinkage
Misappropriation
Embezzlement
3. If an auditor discovers instances of noncompliance during an audit, what
should be their immediate course of action?
Report the findings to the appropriate authorities and assess
the impact on the audit opinion.
Ignore the findings if they are unintentional.
Continue the audit without addressing the noncompliance.
,Only inform management without further action.
,4. Describe the significance of having a finance director approve large
revenue transactions in the context of auditing.
The finance director only approves transactions related to
expenses, not revenues.
The finance director's role is limited to budgeting and does not
involve transaction approvals.
The finance director's approval is unnecessary for small
transactions.
The finance director's approval ensures that complex
transactions are reviewed for accuracy and compliance with
internal controls and auditing standards.
5. What is the primary document an auditor must provide to management
and the audit committee before issuing the auditor's report on ICFR for
integrated audit clients?
A financial statement audit report
A risk assessment report
A compliance report
A report summarizing the quality of internal controls
6. What is the term used to describe a situation where management does
not provide necessary information during an audit?
Material misstatement
Internal control deficiency
Scope limitation
Management assertion
7. Describe the significance of individually important locations in the
context of an audit.
, Individually important locations are only significant for tax
purposes.
Individually important locations are irrelevant to the audit process.
Individually important locations only affect the internal controls of
a company.
Individually important locations are crucial because they
directly impact the overall financial statements of the client.
8. Describe the systematic sampling method used in attribute testing and its
significance in auditing.
Systematic sampling is a method where samples are chosen
based on auditor judgment, focusing on high-risk areas.
Systematic sampling is a technique that randomly selects items
without any specific order.
Systematic sampling requires selecting items based on their
monetary value to ensure high materiality levels.
Systematic sampling involves selecting every nth item after a
random start, which helps ensure a representative sample.
9. If an auditor determines that the performance materiality for a specific
audit is set too high, what might be a potential consequence?
The auditor will need to adjust the overall audit strategy.
The audit will be completed more quickly and efficiently.
The auditor will have to increase the sample size of transactions
tested.
The auditor may overlook significant misstatements in the
financial statements.
10. What is the primary management assertion related to the acquisition and
payment cycle that is verified by observing the client's annual physical
