WGU D251 ADVANCED AUDITING FINAL EXAM
NEWEST ACTUAL EXAM COMPREHENSIVE
QUESTIONS AND VERIFIED ANSWERS GRADED A+
What is Block Sampling? - ✔✔✔ Correct Answer > Nonstatistical
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sampling method that involves selecting a sample that consists of
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contiguous population items, such as selecting transactions by day or
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week
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What is supply chain management? - ✔✔✔ Correct Answer >
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Management and control of materials in the logistics process from the
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acquisition of raw materials to the delivery of finished products to the
| | | | | | | | | | | |
end user (customer)
| | |
Which management assertion would cause an auditor to use a
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nonstatistical sampling method? - ✔✔✔ Correct Answer > Existence
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What is the Iron Curtain Method? - ✔✔✔ Correct Answer > Zero
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reliance on internal controls with detailed transaction testing and audit
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procedures
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,What is an Automated Purchasing System? - ✔✔✔ Correct Answer >
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A networked software system linking to vendors whose offerings and
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prices supply chain management personnel have preapproved
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How is the tainting percentage calculated? - ✔✔✔ Correct Answer >
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The amount of misstatement in an item divided by the item's recorded
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amount
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What is an unqualified opinion? - ✔✔✔ Correct Answer > The
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auditor has no reservations about the fairness of presentation of the
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financial statements
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How does the AICPA describe audit reporting? - ✔✔✔ Correct
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Answer > The purpose of an audit is to enhance the degree of
| | | | | | | | | | | | |
confidence that users can place in the financial statement. This purpose
| | | | | | | | | | |
is achieved when an auditor expresses an opinion on the financial
| | | | | | | | | | |
statements.
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What procedure can test 100% of the population? - ✔✔✔ Correct
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Answer > Data Analytics Analysis
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What factor is used in planning samples and represents the precision
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required to keep sampling risk at the desired level? - ✔✔✔ Correct
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Answer > Allowance for Sampling Error
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,What is a Type I subsequent event? - ✔✔✔ Correct Answer > Events
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that existed at the balance sheet date
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What is a type II subsequent event? - ✔✔✔ Correct Answer > Events
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that did not exist at the balance sheet date, but may require disclosure
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Who signs the management representation letter? - ✔✔✔ Correct
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Answer > CEO and CFO
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To whom would an audit team communicate difficulties in performing
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an audit? - ✔✔✔ Correct Answer > The Audit Committee
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The auditor notified the client to make appropriate and timely
| | | | | | | | |
disclosures of new material facts, but the client did not cooperate.
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What should the auditor do next? - ✔✔✔ Correct Answer > Notify
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the client and any regulatory agency with jurisdiction over the client
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that the audit report should no longer be associated with the client's
| | | | | | | | | | | |
financial statements
| |
Which statement would be included in a management representation
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letter? - ✔✔✔ Correct Answer > "The effects of uncorrected
| | | | | | | | | |
misstatements are immaterial, both individually and in the aggregate."
| | | | | | | | |
What is Positive Assurance? - ✔✔✔ Correct Answer > An explicit
| | | | | | | | | |
statement as to whether the financial statements are presented fairly
| | | | | | | | | |
, and, for larger U.S. public companies, whether internal control over
| | | | | | | | |
financial reporting is effective.
| | | |
Another term for Unqualified Opinion? - ✔✔✔ Correct Answer >
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Unmodified Opinion |
How does the PCAOB describe audit reporting? - ✔✔✔ Correct
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Answer > The objective of the ordinary audit of financial statements by
| | | | | | | | | | | |
the independent auditor is the expression of an opinion on the fairness
| | | | | | | | | | | |
with which they present, in all material respects, financial position,
| | | | | | | | | |
results of operations, and its cash flows in conformity with generally
| | | | | | | | | | |
accepted accounting principles. The auditor's report is the medium
| | | | | | | | |
through which he expresses his opinion or, if circumstances require,
| | | | | | | | | |
disclaims an opinion.
| | |
How does the IAASB describe audit reporting? - ✔✔✔ Correct
| | | | | | | | |
Answer > To form an opinion on the financial statements based on an
| | | | | | | | | | | | |
evaluation of the conclusions drawn from the audit evidence obtained
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What are the conditions to issue an unqualified report? - ✔✔✔
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Correct Answer > No material violations of GAAP, disclosures are
| | | | | | | | | |
accurate, all necessary procedures performed, no change in accounting
| | | | | | | | |
principles that had a material effect, no doubt of going concern, auditor
| | | | | | | | | | | |
is independent.
| |
NEWEST ACTUAL EXAM COMPREHENSIVE
QUESTIONS AND VERIFIED ANSWERS GRADED A+
What is Block Sampling? - ✔✔✔ Correct Answer > Nonstatistical
| | | | | | | | |
sampling method that involves selecting a sample that consists of
| | | | | | | | | |
contiguous population items, such as selecting transactions by day or
| | | | | | | | | |
week
|
What is supply chain management? - ✔✔✔ Correct Answer >
| | | | | | | | |
Management and control of materials in the logistics process from the
| | | | | | | | | | |
acquisition of raw materials to the delivery of finished products to the
| | | | | | | | | | | |
end user (customer)
| | |
Which management assertion would cause an auditor to use a
| | | | | | | | |
nonstatistical sampling method? - ✔✔✔ Correct Answer > Existence
| | | | | | | | |
What is the Iron Curtain Method? - ✔✔✔ Correct Answer > Zero
| | | | | | | | | | |
reliance on internal controls with detailed transaction testing and audit
| | | | | | | | | |
procedures
|
,What is an Automated Purchasing System? - ✔✔✔ Correct Answer >
| | | | | | | | | |
A networked software system linking to vendors whose offerings and
| | | | | | | | | |
prices supply chain management personnel have preapproved
| | | | | | |
How is the tainting percentage calculated? - ✔✔✔ Correct Answer >
| | | | | | | | | |
The amount of misstatement in an item divided by the item's recorded
| | | | | | | | | | | |
amount
|
What is an unqualified opinion? - ✔✔✔ Correct Answer > The
| | | | | | | | | |
auditor has no reservations about the fairness of presentation of the
| | | | | | | | | | |
financial statements
| |
How does the AICPA describe audit reporting? - ✔✔✔ Correct
| | | | | | | | |
Answer > The purpose of an audit is to enhance the degree of
| | | | | | | | | | | | |
confidence that users can place in the financial statement. This purpose
| | | | | | | | | | |
is achieved when an auditor expresses an opinion on the financial
| | | | | | | | | | |
statements.
|
What procedure can test 100% of the population? - ✔✔✔ Correct
| | | | | | | | | |
Answer > Data Analytics Analysis
| | | | |
What factor is used in planning samples and represents the precision
| | | | | | | | | |
required to keep sampling risk at the desired level? - ✔✔✔ Correct
| | | | | | | | | | | |
Answer > Allowance for Sampling Error
| | | | | |
,What is a Type I subsequent event? - ✔✔✔ Correct Answer > Events
| | | | | | | | | | | |
that existed at the balance sheet date
| | | | | | |
What is a type II subsequent event? - ✔✔✔ Correct Answer > Events
| | | | | | | | | | | |
that did not exist at the balance sheet date, but may require disclosure
| | | | | | | | | | | | |
Who signs the management representation letter? - ✔✔✔ Correct
| | | | | | | |
Answer > CEO and CFO
| | | | |
To whom would an audit team communicate difficulties in performing
| | | | | | | | |
an audit? - ✔✔✔ Correct Answer > The Audit Committee
| | | | | | | | | |
The auditor notified the client to make appropriate and timely
| | | | | | | | |
disclosures of new material facts, but the client did not cooperate.
| | | | | | | | | | |
What should the auditor do next? - ✔✔✔ Correct Answer > Notify
| | | | | | | | | | | |
the client and any regulatory agency with jurisdiction over the client
| | | | | | | | | | |
that the audit report should no longer be associated with the client's
| | | | | | | | | | | |
financial statements
| |
Which statement would be included in a management representation
| | | | | | | |
letter? - ✔✔✔ Correct Answer > "The effects of uncorrected
| | | | | | | | | |
misstatements are immaterial, both individually and in the aggregate."
| | | | | | | | |
What is Positive Assurance? - ✔✔✔ Correct Answer > An explicit
| | | | | | | | | |
statement as to whether the financial statements are presented fairly
| | | | | | | | | |
, and, for larger U.S. public companies, whether internal control over
| | | | | | | | |
financial reporting is effective.
| | | |
Another term for Unqualified Opinion? - ✔✔✔ Correct Answer >
| | | | | | | | |
Unmodified Opinion |
How does the PCAOB describe audit reporting? - ✔✔✔ Correct
| | | | | | | | |
Answer > The objective of the ordinary audit of financial statements by
| | | | | | | | | | | |
the independent auditor is the expression of an opinion on the fairness
| | | | | | | | | | | |
with which they present, in all material respects, financial position,
| | | | | | | | | |
results of operations, and its cash flows in conformity with generally
| | | | | | | | | | |
accepted accounting principles. The auditor's report is the medium
| | | | | | | | |
through which he expresses his opinion or, if circumstances require,
| | | | | | | | | |
disclaims an opinion.
| | |
How does the IAASB describe audit reporting? - ✔✔✔ Correct
| | | | | | | | |
Answer > To form an opinion on the financial statements based on an
| | | | | | | | | | | | |
evaluation of the conclusions drawn from the audit evidence obtained
| | | | | | | | | |
What are the conditions to issue an unqualified report? - ✔✔✔
| | | | | | | | | |
Correct Answer > No material violations of GAAP, disclosures are
| | | | | | | | | |
accurate, all necessary procedures performed, no change in accounting
| | | | | | | | |
principles that had a material effect, no doubt of going concern, auditor
| | | | | | | | | | | |
is independent.
| |
