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WGU D251 OA NEWEST 2025/ 2026 / WGU D251
ADAVANCED AUDITING OBJECTIVE ASSESSMENT
TEST BANK LATEST 2025/ 2026 ACTUAL EXAM WITH
COMPLETE QUESTIONS AND CORRECT DETAILED
ANSWERS (100% VERIFIED ANSWERS) |ALREADY
GRADED A+| |VERIFIED EXAM!!!|| ||LATEST EXAM!!!||
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.
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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
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
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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 risk and control risk? - Answer-Risk of
material misstatement
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What represents an identified and assessed risk of
material misstatement that requires special audit
consideration? - Answer-Significant risk
What is the impact on the amount of acceptable audit risk
if an auditor believes the chance of financial failure of a
client is high? - Answer-The acceptable audit risk is
reduced.
Which factor should lead an auditor to assess inherent risk
as high? - Answer-The account balance consists of a large
number of complex transactions.
Which factor would lead an auditor to assess client
business risk at a higher level? - Answer-The client's use
of information technology is incompatible across systems
and processes.
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? - Answer-75% of $500,000
WGU D251 OA NEWEST 2025/ 2026 / WGU D251
ADAVANCED AUDITING OBJECTIVE ASSESSMENT
TEST BANK LATEST 2025/ 2026 ACTUAL EXAM WITH
COMPLETE QUESTIONS AND CORRECT DETAILED
ANSWERS (100% VERIFIED ANSWERS) |ALREADY
GRADED A+| |VERIFIED EXAM!!!|| ||LATEST EXAM!!!||
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.
,2|Page
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
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
,3|Page
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 risk and control risk? - Answer-Risk of
material misstatement
, 4|Page
What represents an identified and assessed risk of
material misstatement that requires special audit
consideration? - Answer-Significant risk
What is the impact on the amount of acceptable audit risk
if an auditor believes the chance of financial failure of a
client is high? - Answer-The acceptable audit risk is
reduced.
Which factor should lead an auditor to assess inherent risk
as high? - Answer-The account balance consists of a large
number of complex transactions.
Which factor would lead an auditor to assess client
business risk at a higher level? - Answer-The client's use
of information technology is incompatible across systems
and processes.
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? - Answer-75% of $500,000
