WGU D251 OBJECTIVE ASSESSMENT 2 NEWEST 2026
ACTUAL EXAM TEST BANK| D251 ADVANCED
AUDITING OA FINAL EXAM WITH 350 REAL EXAM
QUESTIONS AND CORRECT VERIFIED ANSWERS/
ALREADY GRADED A+ (MOST RECENT!!)
An auditor determines overall materiality of $500,000 would be material
to the income statement and $1,000,000 would be material to the balance
sheet. Which amount would an auditor typically assess performance
materiality to be for this client?
a. $1,000,000
b. 75% of $1,000,000
c. 75% of $500,000
d. $500,000 - Correct Answer -c. 75% of $500,00
At which percentage do auditors commonly set posting materiality?
a. 5 % of planning materiality
b. 6 % of performance materiality
c. 5 % of performance materiality
d. 6 % of planning materiality - Correct Answer -a. 5 % of planning
materiality
How can an auditor increase the chances that systematically selected
samples are representative of the population?
pg. 1
,a. By choosing random items based on the auditor's judgment
b. By using multiple random starts
c. By selecting items near the period cutoff date
d. By selecting items that end in only odd numbers - Correct Answer -b.
By using multiple random starts
Which sampling method allows an auditor to measure the risk of making
an incorrect inference about the population from which the sample is
taken?
a. Judgment
b. Haphazard
c. Statistical
d. Nonstatistical - Correct Answer -c. Statistical
Which type of misstatement results from an auditor's best estimate of the
total misstatements in a given population based on the misstatements
detected in an audit sample of that population?
a. Known misstatements
b. Judgmental misstatements
c. Factual misstatements
d. Projected misstatements. - Correct Answer - d. Projected
misstatements.
pg. 2
,Who is responsible for designing and maintaining policies and
procedures to identify, evaluate, and account for loss contingencies in
accordance with generally accepted accounting principles (GAAP)?
a. The head of internal audit
b. The board of directors
c. Management
d. Auditors - Correct Answer - c. Management
Which procedures help an auditor form an overall conclusion about
whether financial statements are consistent with the auditor's
understanding of an entity?
a. Review analytical procedures
b. Preliminary analytical procedures
c. Substantive analytical procedures
d. Subsequent analytical procedures - Correct Answer - a. Review
analytical procedures
What is a risk - based review in which a reviewer evaluates the
significant judgments and conclusions made by an audit team?
a. AICPA quality review
b. Client quality review
c. PCAOB quality review
d. Engagement quality review - Correct Answer - d. Engagement quality
review
pg. 3
, An auditor concludes that an illegal act has been committed, the act has
a material effect on the financial statements, and the act has not been
properly disclosed. What should the auditor do?
a. Issue a waiver
b. Issue a disclaimer
c. Issue an adverse opinion
d. Issue a limited opinion - Correct Answer - c. Issue an adverse opinion
Which opinion should an auditor use for a situation where there is a
scope limitation that is material but not pervasive?
a. Adverse
b. Unqualified
c. Disclaimer
d. Qualified - Correct Answer - d. Qualified
During an engagement, an auditor may be unable to gather sufficient
supporting evidence in order to issue an unqualified opinion. Which
agency or organization, with limited exceptions, will only accept an
unqualified opinion?
a. Governmental Accounting Standards Board (GASB)
b. American Institute of Certified Public Accountants (AICPA)
c. Securities and Exchange Commission (SEC)
d. Public Company Accounting Oversight Board ( PCAOB ) - Correct
Answer - c. Securities and Exchange Commission (SEC)
pg. 4
ACTUAL EXAM TEST BANK| D251 ADVANCED
AUDITING OA FINAL EXAM WITH 350 REAL EXAM
QUESTIONS AND CORRECT VERIFIED ANSWERS/
ALREADY GRADED A+ (MOST RECENT!!)
An auditor determines overall materiality of $500,000 would be material
to the income statement and $1,000,000 would be material to the balance
sheet. Which amount would an auditor typically assess performance
materiality to be for this client?
a. $1,000,000
b. 75% of $1,000,000
c. 75% of $500,000
d. $500,000 - Correct Answer -c. 75% of $500,00
At which percentage do auditors commonly set posting materiality?
a. 5 % of planning materiality
b. 6 % of performance materiality
c. 5 % of performance materiality
d. 6 % of planning materiality - Correct Answer -a. 5 % of planning
materiality
How can an auditor increase the chances that systematically selected
samples are representative of the population?
pg. 1
,a. By choosing random items based on the auditor's judgment
b. By using multiple random starts
c. By selecting items near the period cutoff date
d. By selecting items that end in only odd numbers - Correct Answer -b.
By using multiple random starts
Which sampling method allows an auditor to measure the risk of making
an incorrect inference about the population from which the sample is
taken?
a. Judgment
b. Haphazard
c. Statistical
d. Nonstatistical - Correct Answer -c. Statistical
Which type of misstatement results from an auditor's best estimate of the
total misstatements in a given population based on the misstatements
detected in an audit sample of that population?
a. Known misstatements
b. Judgmental misstatements
c. Factual misstatements
d. Projected misstatements. - Correct Answer - d. Projected
misstatements.
pg. 2
,Who is responsible for designing and maintaining policies and
procedures to identify, evaluate, and account for loss contingencies in
accordance with generally accepted accounting principles (GAAP)?
a. The head of internal audit
b. The board of directors
c. Management
d. Auditors - Correct Answer - c. Management
Which procedures help an auditor form an overall conclusion about
whether financial statements are consistent with the auditor's
understanding of an entity?
a. Review analytical procedures
b. Preliminary analytical procedures
c. Substantive analytical procedures
d. Subsequent analytical procedures - Correct Answer - a. Review
analytical procedures
What is a risk - based review in which a reviewer evaluates the
significant judgments and conclusions made by an audit team?
a. AICPA quality review
b. Client quality review
c. PCAOB quality review
d. Engagement quality review - Correct Answer - d. Engagement quality
review
pg. 3
, An auditor concludes that an illegal act has been committed, the act has
a material effect on the financial statements, and the act has not been
properly disclosed. What should the auditor do?
a. Issue a waiver
b. Issue a disclaimer
c. Issue an adverse opinion
d. Issue a limited opinion - Correct Answer - c. Issue an adverse opinion
Which opinion should an auditor use for a situation where there is a
scope limitation that is material but not pervasive?
a. Adverse
b. Unqualified
c. Disclaimer
d. Qualified - Correct Answer - d. Qualified
During an engagement, an auditor may be unable to gather sufficient
supporting evidence in order to issue an unqualified opinion. Which
agency or organization, with limited exceptions, will only accept an
unqualified opinion?
a. Governmental Accounting Standards Board (GASB)
b. American Institute of Certified Public Accountants (AICPA)
c. Securities and Exchange Commission (SEC)
d. Public Company Accounting Oversight Board ( PCAOB ) - Correct
Answer - c. Securities and Exchange Commission (SEC)
pg. 4
