WGU D251 ADAVANCED AUDITING OBJECTIVE ASSESSMENT ACTUAL EXAM NEWEST 2024 ACTUAL EXAM COMPLETE 400 QUESTIONS AND CORRECT DETAILED ANSWERS (VERIFIED ANSWERS) |ALREADY GRADED A+

1 | P a g e WGU D251 ADAVANCED AUDITING OBJECTIVE ASSESSMENT ACTUAL EXAM NEWEST 2024 ACTUAL EXAM COMPLETE 400 QUESTIONS AND CORRECT DETAILED ANSWERS (VERIFIED ANSWERS) |ALREADY GRADED A+ 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 - ANSWER- c. Issue an adverse opinion When should an auditor issue an adverse opinion when reporting on internal controls over financial reporting of a U.S. public company? a. When there are more than five material weaknesses b. When there is more than one material weaknesses but fewer than three material weaknesses c. When there are more than three material weaknesses but fewer than five material weaknesses d. When there is one material weakness - ANSWER- d. When there is one material weakness 2 | P a g e Which scenario could cause a scope limitation? a. A company's accounting records were destroyed during a flood at the company's headquarters b. A client allows communication with the client's attorney c. An audit firm was hired in November 2020 to audit a company's 2021 financial statements and was present at the December 2020 inventory count d. Management provided confirmation requests for all accounts requested by an auditor for the current year's audit - ANSWER- a. A company's accounting records were destroyed during a flood at the company's headquarters Which condition must be present for an auditor to issue an unqualified / unmodified report? a. The auditor is assured that there were no fraudulent transactions b. The client guarantees that they are a going concern c. The financial statement disclosures are adequate d. The auditing staff's experience is adequate - ANSWER- c. The financial statement disclosures are adequate Which opinion should an auditor use for a situation where there is a scope limitation that is material but not pervasive? 3 | P a g e a. Adverse b. Unqualified c. Disclaimer d. Qualified - ANSWER- d. Qualified What is the basic principle of audit reporting according to the AICPA? a. The purpose of an audit is to guarantee the financial statements are free of material misstatements b. The purpose of an audit is to enhance the degree of confidence that users can place in the financial statements c. The purpose of an audit is to issue a written report only when the auditor finds material misstatements in the financial statements d. The purpose of an audit is to guarantee the reliability users can pl - ANSWER- b. The purpose of an audit is to enhance the degree of confidence that users can place in the financial statements In which audit report paragraph should an auditor disclose all of the substantive reasons for issuing a qualified report? a. Scope paragraph b. Introduction paragraph c. Title paragraph d. Opinion paragraph - ANSWER- d. Opinion paragraph 4 | P a g e Which opinion should an auditor use for a situation where the auditor concludes that there is a going concern issue? a. Qualified b. Unqualified with other-matter-paragraph c. Adverse d. Unqualified with emphasis-of-matter-paragraph - ANSWER- d. Unqualified with emphasis-of-matter-paragraph 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 ) - ANSWER- c. Securities and Exchange Commission (SEC) Which opinion should an auditor use for a situation where there is a departure from financial reporting framework that is material and pervasive? a. Unqualified