WGU D251 Advanced Auditing Final Exam | Questions with 100% Correct Answers | Verified | Latest Update | 28 Pages
Question : 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).
Correct answer: D: the applicable financial reporting framework (i.e., GAAP in the United States).
Question : 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.
Correct answer: D: valuation.
Question : Assurance services involve all of the following,
except:
A: relevance as well as the reliability of information.
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.
Correct answer: C: providing absolute rather than reasonable assurance.
Question : 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.
Correct answer: C: Accuracy.
Question : 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.