SOFE Exam AFE Topic 2 Question 89 Discussion

Actual exam question for SOFE's AFE exam

Question #: 89
Topic #: 2

[All AFE Questions]

Which are the types of misstatements relevant to the auditor's consideration of fraud in a financial statement audit?

Amisstatements arising from fraudulent financial reporting

Bmisstatements arising from misappropriations of assets

CBoth A & B

DNeither A nor B

Show Suggested Answer

Suggested Answer: B

by Carlota at Sep 17, 2024, 06:54 PM

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Dorethea

13 hours ago

Option C seems like the obvious choice here. Both fraudulent financial reporting and misappropriation of assets are definitely relevant to an auditor's consideration of fraud.

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Trina

4 days ago

I'm not sure, but I think misstatements relevant to fraud can also include neither A nor B.

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Shay

11 days ago

I agree with Cecil, misstatements can arise from both fraudulent financial reporting and misappropriations of assets.

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Cecil

12 days ago

I think the types of misstatements relevant to fraud are both A & B.

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