WGU D560 INTERNAL AUDITING I OA
OBJECTIVE ASSESSMENT 59 QUESTIONS
TEST BANK 2026 UPDATED QUESTIONS
WITH ANSWERS GRADED A+
⩥ Accounting estimate. Answer: An approximation of a monetary
amount when a precise means of measurement is not available.
⩥ Accounting records. Answer: Client's records of the initial accounting
entry and supporting documents.
⩥ Acid-test (quick) ratio. Answer: Measures ability to meet short-term
obligations with liquid assets such as cash, short-term investments, and
receivables.
⩥ Advance shipping notice (ASN). Answer: An electronic
acknowledgement of a transaction by a supplier indicating goods
shipped, prices, and other information such as freight costs or taxes.
⩥ Adverse interest threat. Answer: The threat that a CPA will not act
with objectivity because the CPA's interests are opposed to the client's
interests.
,⩥ Adverse opinion. Answer: Auditors state the financial statements are
not fairly presented due to a pervasively material departure from the
applicable financial reporting framework.
⩥ Advocacy threat. Answer: The threat that a CPA will promote a
client's interests or position to the point that his or her objectivity or
independence is compromised.
⩥ Allowance for sampling risk (ASR). Answer: A measure of the
uncertainty associated with not sampling the entire population.
⩥ Analytical procedures. Answer: Evaluations of financial information
through analysis of plausible relationships among both financial and
nonfinancial data; analytical procedures also encompass such
investigation, as is necessary, of identified fluctuations or relationships
that are inconsistent with other relevant information or that differ from
expected values by a significant amount.
⩥ Appropriate. Answer: Refers to the quality of audit evidence gathered.
⩥ Assertions. Answer: Statements or representations, explicit or implied,
made by management regarding the recognition, measurement,
presentation, and disclosure of items included in the financial
statements.
,⩥ Assurance services. Answer: Independent professional services that
improve the quality of information, or its context, for decision makers.
⩥ Attestation services. Answer: Services performed when an
independent practitioner, or CPA, is engaged to issue a report on subject
matter that is the responsibility of another party.
⩥ Attribute sampling. Answer: A sampling technique used to reach a
conclusion about a population in terms of a rate (frequency) of
occurrence.
⩥ Audit committee. Answer: A committee of the board of directors
responsible for oversight of internal controls, financial reporting and
disclosure in the financial statements, regulatory compliance, and the
company's independent auditors.
⩥ Audit data analytics (ADA). Answer: The science and art of
discovering and analyzing patterns, identifying anomalies, and
extracting other useful information in data underlying or related to the
subject matter of an audit through analysis, modeling, and visualization
for planning and performing the audit.
⩥ Audit evidence. Answer: Information gathered by the auditor that is
used when forming an opinion on the fair presentation of a client's
financial statements.
, ⩥ Audit program. Answer: A listing of details of the audit procedures to
be used when testing controls, conducting detailed substantive audit
procedures, and completing the audit.
⩥ Audit risk. Answer: The risk that an auditor expresses an inappropriate
audit opinion when the financial statements are materially misstated.
⩥ Audit sampling. Answer: The selection and evaluation of less than
100% of the population of audit relevance such that the auditor expects
the items selected (the sample) to be representative of the population
and, thus, likely to provide a reasonable basis for conclusions about the
population.
⩥ Audit services. Answer: Services by an independent CPA that provide
financial statement users with (1) an opinion on whether the financial
statements are presented fairly, in all material respects, in accordance
with an applicable financial reporting framework and, in some cases, (2)
an opinion on the effectiveness of ICFR, which enhances the degree of
confidence that intended users can place in the financial statements.
⩥ Audit strategy. Answer: The determination of the amount of time
spent testing the client's internal controls and conducting detailed testing
of transactions and account balances.
⩥ Bank confirmation. Answer: Correspondence sent directly by the
auditors to their client's bank requesting information such as cash held in
OBJECTIVE ASSESSMENT 59 QUESTIONS
TEST BANK 2026 UPDATED QUESTIONS
WITH ANSWERS GRADED A+
⩥ Accounting estimate. Answer: An approximation of a monetary
amount when a precise means of measurement is not available.
⩥ Accounting records. Answer: Client's records of the initial accounting
entry and supporting documents.
⩥ Acid-test (quick) ratio. Answer: Measures ability to meet short-term
obligations with liquid assets such as cash, short-term investments, and
receivables.
⩥ Advance shipping notice (ASN). Answer: An electronic
acknowledgement of a transaction by a supplier indicating goods
shipped, prices, and other information such as freight costs or taxes.
⩥ Adverse interest threat. Answer: The threat that a CPA will not act
with objectivity because the CPA's interests are opposed to the client's
interests.
,⩥ Adverse opinion. Answer: Auditors state the financial statements are
not fairly presented due to a pervasively material departure from the
applicable financial reporting framework.
⩥ Advocacy threat. Answer: The threat that a CPA will promote a
client's interests or position to the point that his or her objectivity or
independence is compromised.
⩥ Allowance for sampling risk (ASR). Answer: A measure of the
uncertainty associated with not sampling the entire population.
⩥ Analytical procedures. Answer: Evaluations of financial information
through analysis of plausible relationships among both financial and
nonfinancial data; analytical procedures also encompass such
investigation, as is necessary, of identified fluctuations or relationships
that are inconsistent with other relevant information or that differ from
expected values by a significant amount.
⩥ Appropriate. Answer: Refers to the quality of audit evidence gathered.
⩥ Assertions. Answer: Statements or representations, explicit or implied,
made by management regarding the recognition, measurement,
presentation, and disclosure of items included in the financial
statements.
,⩥ Assurance services. Answer: Independent professional services that
improve the quality of information, or its context, for decision makers.
⩥ Attestation services. Answer: Services performed when an
independent practitioner, or CPA, is engaged to issue a report on subject
matter that is the responsibility of another party.
⩥ Attribute sampling. Answer: A sampling technique used to reach a
conclusion about a population in terms of a rate (frequency) of
occurrence.
⩥ Audit committee. Answer: A committee of the board of directors
responsible for oversight of internal controls, financial reporting and
disclosure in the financial statements, regulatory compliance, and the
company's independent auditors.
⩥ Audit data analytics (ADA). Answer: The science and art of
discovering and analyzing patterns, identifying anomalies, and
extracting other useful information in data underlying or related to the
subject matter of an audit through analysis, modeling, and visualization
for planning and performing the audit.
⩥ Audit evidence. Answer: Information gathered by the auditor that is
used when forming an opinion on the fair presentation of a client's
financial statements.
, ⩥ Audit program. Answer: A listing of details of the audit procedures to
be used when testing controls, conducting detailed substantive audit
procedures, and completing the audit.
⩥ Audit risk. Answer: The risk that an auditor expresses an inappropriate
audit opinion when the financial statements are materially misstated.
⩥ Audit sampling. Answer: The selection and evaluation of less than
100% of the population of audit relevance such that the auditor expects
the items selected (the sample) to be representative of the population
and, thus, likely to provide a reasonable basis for conclusions about the
population.
⩥ Audit services. Answer: Services by an independent CPA that provide
financial statement users with (1) an opinion on whether the financial
statements are presented fairly, in all material respects, in accordance
with an applicable financial reporting framework and, in some cases, (2)
an opinion on the effectiveness of ICFR, which enhances the degree of
confidence that intended users can place in the financial statements.
⩥ Audit strategy. Answer: The determination of the amount of time
spent testing the client's internal controls and conducting detailed testing
of transactions and account balances.
⩥ Bank confirmation. Answer: Correspondence sent directly by the
auditors to their client's bank requesting information such as cash held in
