WGU D251 ADVANCED AUDITING FINAL EXAM | 300+ Questions with 100% Correct Answers | Updated & Verified 2023 . WGU D251 - Advanced Auditing 2023 1. misstatement: An error, either intentional or unintentional, that exists in a transaction or financial statement account balance. 2. alternative procedur...
WGU D251 ADVANCED AUDITING FINAL EXAM |
300+ Questions with 100% Correct Answers | Updated &
Verified 2023
,WGU D251 ADVANCED AUDITING FINAL EXAM | 300+ Questions with
100% Correct Answers | Updated & Verified 2023
1. misstatement: An error, either intentional or unintentional, that exists in a trans-
action or financial statement account balance.
2. alternative procedures: Procedures used to obtain evidence about the existence
and valuation of accounts receivable when a positive confirmation is not returned,
including examining cash collected after the confirmation date and vouching unpaid
invoices to customers' orders, sales orders, shipping documents, and sales invoices.
3. Altman Z-scores: A series of ratios that have predictive power in indicating the
likelihood of bankruptcy. This score is named for the person who first introduced the
concept and associated measurement.
4. attribute: A characteristic of the population of interest to the auditor.
5. Attributes sampling: A statistical sampling method used to estimate the rate
of control procedure failures based on selecting one sample and performing the
appropriate audit procedure.
6. Audit Risk: The risk that the auditor expresses an inappropriate audit opinion
when the financial statements are materially misstated.
7. Audit Risk Model: Audit Risk = Inherent Risk X Control Risk X Detention Risk
,WGU D251 ADVANCED AUDITING FINAL EXAM | 300+ Questions with
100% Correct Answers | Updated & Verified 2023
8. audit risk model: A conceptual depiction of the relationship between inherent
risk, control risk, detection risk, and audit risk.
9. Audit sampling: The application of an audit procedure to less than 100% of the
items within an account balance or class of transactions for the purpose of evaluating
some characteristic of the balance or class.
10. audit scope: The range of accounts and transactions that the auditor evaluates,
along with the amount of evidence that they gather, assessments of which accounts
and transactions are material, as well as the critical areas where the auditor em-
ployed significant assumptions and made associated professional judgments.
11. auditor business risk: This risk reflects the potential for loss to the auditor
that the client poses, including being a publicly traded client, not being a profitable
engagement, damaging the auditor's reputation, and/or potential litigation relating
to the engagement.
12. auditor-detected misstatements: Such a misstatement occurs when, during
the audit, the auditor comes to find that there exists an error in the recording of a
particular transaction, regardless of whether it was intentional or unintentional.
13. automated purchasing system: A networked software system that links a com-
pany's website to other vendors whose offerings and prices have been preapproved
by appropriate management.
, WGU D251 ADVANCED AUDITING FINAL EXAM | 300+ Questions with
100% Correct Answers | Updated & Verified 2023
14. Basic precision: The amount of uncertainty associated with testing only a part
of the population (sampling risk). Basic precision is calculated as the sampling
interval multiplied by a confidence factor.
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