2026 WGU D215 – AUDITING ACTUAL EXAM
|QUESTIONS AND CORRECT DETAILED ANSWERS
|LATEST 2026 VERSION!!!ALREADY GRADED A+
Which of the following falls within the purview of a financial
statement preparer?
a) independent audit
b) Mergers and acquisitions
c) Changes in equity
d) Business valuation - Answer -c) Changes in equity
Management is responsible for which of the following?
a) Preparing financial statements which will please the board of
directors and investors.
b) Issuing an opinion on whether the financial statements are
presented fairly in accordance with the appropriate financial reporting
framework.
c) Preparing financial statements in accordance with the appropriate
auditing standards.
d) Designing, implementing, and maintaining internal control relevant
to the preparation of the financial statements.
- Answer -d) Designing, implementing, and maintaining internal
control relevant to the preparation of the financial statements.
Which of the following comes under the purview of the Public
Company Accounting Oversight Board?
a) Statements on Auditing Standards (SAS)
b) Auditing Standards (AS)
pg. 1
,c) Statements on Standards for Attestation Engagement (SSAE)
d) Statements on Quality Control Standards (SQCS)
- Answer -b) Auditing Standards (AS)
Which of the following is a private professional membership
organization of CPAs representing the accounting profession?
a) AICPA
b) ASB
c) PCAOB
d) IAASB - Answer -a) AICPA
Which statement is correct as to financial statement audit reports for
public versus private companies?
a) There is a standard report for the audit of private company financial
statements but none for auditing public company financial statements
b) There is no distinction between standard reports for the audit of
financial statements, regardless of whether the company is private or
public.
c) There is a standard report for the audit of public company financial
statements but none for auditing private company financial
statements.
d) There is a standard report for the audit of public company financial
statements and a standard report for the audit of private company
financial statements.
- Answer -d) There is a standard report for the audit of public
company financial statements and a standard report for the audit of
private company financial statements.
pg. 2
,With regard to financial statements, the auditor is required to obtain
reasonable assurance, which is a level of assurance that is
a) subjective and not absolute
b) high, but not absolute
c) 100%, but not objective
d) guaranteed and absolute - Answer -b) high, but not absolute
If auditors conclude the company did not maintain effective Internal
Control Over Financial Reporting (ICFR) over the period under audit,
it would mean the auditors discovered a/an...............in the client's
ICFR.
a) Material weakness
b) Inherent risk
c) Reasonable assurance
d) Audit risk - Answer -a) Material weakness
Which of the following is the discovery of material weakness?
a) Risk that an auditor expresses an inappropriate audit opinion when
the financial statements are materially misstated
b) Identification of accounts and related assertions most at risk of
material misstatement is part of assurance services and not the
discovery of a material weakness
c) Conclusion that the company did not maintain effective Internal
Control Over Financial Reporting (ICFR) over the period under audit
d) High, but not absolute, level of assurance in a judgment about
matters that are subjective
pg. 3
, - Answer -c) Conclusion that the company did not maintain effective
Internal Control Over Financial Reporting (ICFR) over the period
under audit
Which of the following beliefs will narrow the audit expectation gap?
a) The auditor is guaranteeing the future viability of the entity.
b) The auditor is providing complete assurance.
c) An unmodified audit opinion is an indicator of complete accuracy
of the financial statements.
d) There is no guarantee the auditor will find all material fraud,
should fraud have occurred.
- Answer -d) There is no guarantee the auditor will find all material
fraud, should fraud have occurred.
Economic conditions impact........
a) both financial statement user's expectations and auditor
performance
b) financial statement user's expectations
c) auditor performance
d) neither financial statement user's expectations not auditor
performance - Answer -b) financial statement user's expectations
Identify a service that falls under audit services.
a) Examination of historical financial statements
b) Review of financial forecast
c) Compilation of historical financial statements
pg. 4
|QUESTIONS AND CORRECT DETAILED ANSWERS
|LATEST 2026 VERSION!!!ALREADY GRADED A+
Which of the following falls within the purview of a financial
statement preparer?
a) independent audit
b) Mergers and acquisitions
c) Changes in equity
d) Business valuation - Answer -c) Changes in equity
Management is responsible for which of the following?
a) Preparing financial statements which will please the board of
directors and investors.
b) Issuing an opinion on whether the financial statements are
presented fairly in accordance with the appropriate financial reporting
framework.
c) Preparing financial statements in accordance with the appropriate
auditing standards.
d) Designing, implementing, and maintaining internal control relevant
to the preparation of the financial statements.
- Answer -d) Designing, implementing, and maintaining internal
control relevant to the preparation of the financial statements.
Which of the following comes under the purview of the Public
Company Accounting Oversight Board?
a) Statements on Auditing Standards (SAS)
b) Auditing Standards (AS)
pg. 1
,c) Statements on Standards for Attestation Engagement (SSAE)
d) Statements on Quality Control Standards (SQCS)
- Answer -b) Auditing Standards (AS)
Which of the following is a private professional membership
organization of CPAs representing the accounting profession?
a) AICPA
b) ASB
c) PCAOB
d) IAASB - Answer -a) AICPA
Which statement is correct as to financial statement audit reports for
public versus private companies?
a) There is a standard report for the audit of private company financial
statements but none for auditing public company financial statements
b) There is no distinction between standard reports for the audit of
financial statements, regardless of whether the company is private or
public.
c) There is a standard report for the audit of public company financial
statements but none for auditing private company financial
statements.
d) There is a standard report for the audit of public company financial
statements and a standard report for the audit of private company
financial statements.
- Answer -d) There is a standard report for the audit of public
company financial statements and a standard report for the audit of
private company financial statements.
pg. 2
,With regard to financial statements, the auditor is required to obtain
reasonable assurance, which is a level of assurance that is
a) subjective and not absolute
b) high, but not absolute
c) 100%, but not objective
d) guaranteed and absolute - Answer -b) high, but not absolute
If auditors conclude the company did not maintain effective Internal
Control Over Financial Reporting (ICFR) over the period under audit,
it would mean the auditors discovered a/an...............in the client's
ICFR.
a) Material weakness
b) Inherent risk
c) Reasonable assurance
d) Audit risk - Answer -a) Material weakness
Which of the following is the discovery of material weakness?
a) Risk that an auditor expresses an inappropriate audit opinion when
the financial statements are materially misstated
b) Identification of accounts and related assertions most at risk of
material misstatement is part of assurance services and not the
discovery of a material weakness
c) Conclusion that the company did not maintain effective Internal
Control Over Financial Reporting (ICFR) over the period under audit
d) High, but not absolute, level of assurance in a judgment about
matters that are subjective
pg. 3
, - Answer -c) Conclusion that the company did not maintain effective
Internal Control Over Financial Reporting (ICFR) over the period
under audit
Which of the following beliefs will narrow the audit expectation gap?
a) The auditor is guaranteeing the future viability of the entity.
b) The auditor is providing complete assurance.
c) An unmodified audit opinion is an indicator of complete accuracy
of the financial statements.
d) There is no guarantee the auditor will find all material fraud,
should fraud have occurred.
- Answer -d) There is no guarantee the auditor will find all material
fraud, should fraud have occurred.
Economic conditions impact........
a) both financial statement user's expectations and auditor
performance
b) financial statement user's expectations
c) auditor performance
d) neither financial statement user's expectations not auditor
performance - Answer -b) financial statement user's expectations
Identify a service that falls under audit services.
a) Examination of historical financial statements
b) Review of financial forecast
c) Compilation of historical financial statements
pg. 4
