WGU D251 Advanced Auditing Final Exam, Questions with 100- Correct Answers

WGU D251 Advanced Auditing Final Exam, Questions with
100% Correct Answers
The |auditor's |judgment |concerning |the |overall |fairness |of |the |presentation |of |financial
| position, |results |of |operations, |and |cash |flows |is |applied |within |the |framework |of:


A: |quality |control.


B: |generally |accepted |auditing |standards, |which |include |the |concept |of |materiality.


C: |the |auditor's |evaluation |of |the |audited |company's |internal |control.


D: |the |applicable |financial |reporting |framework |(i.e., |GAAP |in |the |United |States). |- |✔️✔️D: |the
| applicable |financial |reporting |framework |(i.e., |GAAP |in |the |United |States).


Inquiries |of |warehouse |personnel |concerning |possible |obsolete |or |slow |moving |inventory
| items |provide |assurance |about |the |PCAOB |assertion |of:


A: |completeness.


B: |existence.


C: |presentation.


D: |valuation.


E: |rights |and |obligations. |- |✔️✔️D: |valuation.


Assurance |services |involve |all |of |the |following, |except:


A: |relevance |as |well |as |the |reliability |of |information.




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,B: |non |financial |information |as |well |as |traditional |financial |statements.


C: |providing |absolute |rather |than |reasonable |assurance.


D: |electronic |databases |as |well |as |printed |reports. |- |✔️✔️C: |providing |absolute |rather |than |reasonable
| assurance.


According |to |PCAOB |Auditing |Standard |No. |2201 |(AS |2201), |the |auditor |should |identify
| significant |accounts |and |disclosures |and |their |relevant |assertions. |Which |of |the |following
| financial |statement |assertions |is |not |explicitly |identified |in |AS |2201?


A: |Completeness.


B: |Valuation |or |allocation.


C: |Accuracy.


D: |Existence |or |occurrence.


E: |All |of |these |are |assertions |identified |in |AS |5. |- |✔️✔️C: |Accuracy.


Which |of |the |following |is |a |management |assertion |regarding |account |balances |at |the |period
| end?


A: |Transactions |and |events |that |have |been |recorded |have |occurred |and |pertain |to |the |entity.


B: |Transactions |and |events |have |been |recorded |in |the |proper |accounts.


C: |The |entity |holds |or |controls |the |rights |to |assets, |and |liabilities |are |obligations |of |the |entity.




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, D: |Amounts |and |other |data |related |to |the |transactions |and |events |have |been |recorded
| appropriately. |- |✔️✔️C: |The |entity |holds |or |controls |the |rights |to |assets, |and |liabilities |are
obligations |of |the |entity.
|




Which |of |the |following |is |not |included |in |the |American |Accounting |Association |(AAA)
| definition |of |auditing?


A: |Potential |conflict |of |interest.


B: |Systematic |process.


C: |Assertions |about |economic |actions.


D: |Established |criteria. |- |✔️✔️A: |Potential |conflict |of |interest.


The |audit |objective |that |footnotes |in |the |financial |statements |should |be |clear |and |expressed
| such |that |the |information |is |easily |conveyed |to |the |readers |of |the |financial |statements |is
| related |most |closely |with |which |of |the |ASB |presentation |and |disclosure |assertions?


A: |Occurrence.


B: |Rights |and |obligations.


C: |Comprehensibility.


D: | Understandability. | - | ✔️✔️C: | Comprehensibility.


The |audit |objective |that |all |the |transactions |and |accounts |presented |in |the |financial
| statements |represent |real |assets, |liabilities, |revenues, |and |expenses |is |related |most |closely
| to |which |of |the |PCAOB |assertions?




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