- | P a g e
WGU D251 OA NEWEST 2025 / WGU D251 ADAVANCED
AUDITING OBJECTIVE ASSESSMENT TEST BANK
ACTUAL EXAM NEWEST 202 5 ACTUAL EXAM
COMPLETE 400 QUESTIONS AND CORRECT
DETAILED ANSWERS (VERIFIED ANSWERS)
|ALREADY GRADED A+
Which activity occurs with the acquisition and payment cycle?
- Prepare shipping and packing documents
- Generate backorder
- Check inventory stock status
- Create requisition for goods - ANSWER- d. Create
requisition for goods
Which management assertion is addressed when determining if inventory balances include all inventory transactions for the period?
- Completeness 1 / 4
- | P a g e
- Existence/occurrence
- Rights and obligations
- Presentation and disclosure - ANSWER- a. Completeness
Performance Materiality is also known as . - ANSWER- Tolerable Error
Auditor uses Performance Materiality for . - ANSWER- Determining significant accounts, locations, and audit procedures.
Performance Materiality is what percent of Planning Materiality? - ANSWER- 75%
What happens is Performance Materiality is set too high? - ANSWER- Auditor might not perform sufficient procedures to detect material misstatements.
- / 4
- | P a g e
What happens if Performance Materiality is set too low? - ANSWER- Auditor might perform more substantive procedures than needed.
Overall Materiality is also known as . - ANSWER- Planning Materiality
Auditors use Overall Materiality to . - ANSWER- Determine whether financial statements overall are materially correct.
What does Posting Materiality signify? - ANSWER- The misstatements identified throughout the audit that will be considered at the end of the audit in determining whether the financial statements are materially correct.
What percentage is Posting Materiality commonly set at? - ANSWER- 5% of Planning Materiality
- / 4
- | P a g e
What is Materiality? - ANSWER- The magnitude of an omission or misstatement of accounting information that, in light of surrounding circumstances, makes it probable that the judgment of a reasonable person relying on the information would have been changed or influenced by the omission or misstatement.
What makes a fact Material? - ANSWER- If there is a substantial likelihood that a reasonable investor would have viewed the fact as having significantly altered the total mix of information made available.
What is the materiality level that an auditor uses for determining significant accounts, significant locations, and audit procedures for those accounts and locations? - ANSWER- Performance Materiality
An auditor has determined performance materiality has been set too high at the beginning of the audit. Which procedures should this auditor consider to detect misstatements? - ANSWER- The auditor should perform additional substantive audit procedures.
Which risk exists at the overall financial statement level and at the assertion level and can be categorized as involving inherent
- / 4