age 1 of 83
WGU D251 ADVANCED AUDITING OBJECTIVE
ASSESSMENT ACTUAL EXAM 2025/2026 COMPLETE
QUESTIONS BANK AND CORRECT DETAILED ANSWERS
WITH RATIONALES || 100% GUARANTEED PASS
<NEWEST VERSION>
misstatement ......ANSWER........An error, either intentional or
unintentional, that exists in a transaction or financial statement
account balance.
alternative procedures ......ANSWER........Procedures used to
obtain evidence about the existence and valuation of accounts
receivable when a positive confirmation is not returned, including
examining cash collected after the confirmation date and
vouching unpaid invoices to customers' orders, sales orders,
shipping documents, and sales invoices.
,age 2 of 83
Altman Z-scores ......ANSWER........A series of ratios that have
predictive power in indicating the likelihood of bankruptcy. This
score is named for the person who first introduced the concept
and associated measurement.
attribute ......ANSWER........A characteristic of the population of
interest to the auditor.
Attributes sampling ......ANSWER........A statistical sampling
method used to estimate the rate of control procedure failures
based on selecting one sample and performing the appropriate
audit procedure.
Audit Risk ......ANSWER........The risk that the auditor expresses an
inappropriate audit opinion when the financial statements are
materially misstated.
,age 3 of 83
Why is the principle of the lower of cost or market and the
potential obsolescence of inventory concerns for the audit team?
......ANSWER........They are an inherent component of complexity
related to valuation.
Why should a client's legal expenses be examined?
......ANSWER........To determine if there is any pending or
threatened litigation
Audit Risk Model ......ANSWER........Audit Risk = Inherent Risk X
Control Risk X Detention Risk
audit risk model ......ANSWER........A conceptual depiction of the
relationship between inherent risk, control risk, detection risk, and
audit risk.
Audit sampling ......ANSWER........The application of an audit
procedure to less than 100% of the items within an account
, age 4 of 83
balance or class of transactions for the purpose of evaluating
some characteristic of the balance or class.
audit scope ......ANSWER........The range of accounts and
transactions that the auditor evaluates, along with the amount of
evidence that they gather, assessments of which accounts and
transactions are material, as well as the critical areas where the
auditor employed significant assumptions and made associated
professional judgments.
auditor business risk ......ANSWER........This risk reflects the
potential for loss to the auditor that the client poses, including
being a publicly traded client, not being a profitable
engagement, damaging the auditor's reputation, and/or
potential litigation relating to the engagement.
WGU D251 ADVANCED AUDITING OBJECTIVE
ASSESSMENT ACTUAL EXAM 2025/2026 COMPLETE
QUESTIONS BANK AND CORRECT DETAILED ANSWERS
WITH RATIONALES || 100% GUARANTEED PASS
<NEWEST VERSION>
misstatement ......ANSWER........An error, either intentional or
unintentional, that exists in a transaction or financial statement
account balance.
alternative procedures ......ANSWER........Procedures used to
obtain evidence about the existence and valuation of accounts
receivable when a positive confirmation is not returned, including
examining cash collected after the confirmation date and
vouching unpaid invoices to customers' orders, sales orders,
shipping documents, and sales invoices.
,age 2 of 83
Altman Z-scores ......ANSWER........A series of ratios that have
predictive power in indicating the likelihood of bankruptcy. This
score is named for the person who first introduced the concept
and associated measurement.
attribute ......ANSWER........A characteristic of the population of
interest to the auditor.
Attributes sampling ......ANSWER........A statistical sampling
method used to estimate the rate of control procedure failures
based on selecting one sample and performing the appropriate
audit procedure.
Audit Risk ......ANSWER........The risk that the auditor expresses an
inappropriate audit opinion when the financial statements are
materially misstated.
,age 3 of 83
Why is the principle of the lower of cost or market and the
potential obsolescence of inventory concerns for the audit team?
......ANSWER........They are an inherent component of complexity
related to valuation.
Why should a client's legal expenses be examined?
......ANSWER........To determine if there is any pending or
threatened litigation
Audit Risk Model ......ANSWER........Audit Risk = Inherent Risk X
Control Risk X Detention Risk
audit risk model ......ANSWER........A conceptual depiction of the
relationship between inherent risk, control risk, detection risk, and
audit risk.
Audit sampling ......ANSWER........The application of an audit
procedure to less than 100% of the items within an account
, age 4 of 83
balance or class of transactions for the purpose of evaluating
some characteristic of the balance or class.
audit scope ......ANSWER........The range of accounts and
transactions that the auditor evaluates, along with the amount of
evidence that they gather, assessments of which accounts and
transactions are material, as well as the critical areas where the
auditor employed significant assumptions and made associated
professional judgments.
auditor business risk ......ANSWER........This risk reflects the
potential for loss to the auditor that the client poses, including
being a publicly traded client, not being a profitable
engagement, damaging the auditor's reputation, and/or
potential litigation relating to the engagement.
