Deal of The Day! Hurry Up, Grab the Special Discount - Save 25% - Ends In 00:00:00 Coupon code: SAVE25
Welcome to Pass4Success

- Free Preparation Discussions
Mail Us support@pass4success.com
Location US
Mob_nav_barsMENU

SOFE Exam SOFA-CFE Topic 6 Question 84 Discussion

Actual exam question for SOFE's SOFA-CFE exam
Question #: 84
Topic #: 6
[All SOFA-CFE Questions]

Which type of misstatements are considered relevant fro audit purpose?

Show Suggested Answer Hide Answer
Suggested Answer: C

by Alex at Apr 12, 2024, 11:29 AM

Limited Time Offer

25%

Off

Get Premium SOFA-CFE Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel
Elmer
10 months ago
I believe misstatements that are not related to fraud or misappropriation can also impact the financial statements, so they should be considered as well.
upvoted 0 times
...
Portia
11 months ago
But do you think we should also consider misstatements that are not related to fraud or misappropriation?
upvoted 0 times
...
Kristel
11 months ago
I agree with User1, misstatements arising from both fraudulent financial reporting and misappropriation of assets should be considered.
upvoted 0 times
...
Sanjuana
11 months ago
I think both A and B are relevant for audit purposes.
upvoted 0 times
...
Diane
11 months ago
I'm with you all on this. But you know, if I were the examiner, I might try to throw in a tricky one like 'Neither A nor B' just to see who's really paying attention!
upvoted 0 times
...
Mitsue
12 months ago
Exactly! The auditor's main focus is on identifying any intentional or fraudulent misstatements, as those pose a much greater risk to the financial statements. Unintentional errors are still important, but they're not the primary concern.
upvoted 0 times
...
Katina
12 months ago
That's a fair point, Layla. But I think the key distinction here is that the question is specifically about misstatements that are 'considered relevant for audit purposes.' Honest mistakes, while important, are often easier to identify and correct.
upvoted 0 times
...
Layla
12 months ago
Hmm, I'm not so sure. What about misstatements that arise from honest mistakes or oversights? Shouldn't those be considered relevant as well?
upvoted 0 times
Dorian
10 months ago
Both of those types of misstatements are considered relevant for audit purposes.
upvoted 0 times
...
Talia
10 months ago
I agree. Misstatements arising from misappropriation of assets are also important.
upvoted 0 times
...
Reita
10 months ago
Misstatements arising from fraudulent financial reporting are definitely relevant.
upvoted 0 times
...
...
Alecia
12 months ago
I agree with Cristy. These two types of misstatements are the core focus of an audit, as they can significantly impact the financial statements. Ignoring either of these would be a major oversight.
upvoted 0 times
...
Cristy
12 months ago
This is a great question! Clearly, the examiner is trying to test our understanding of the types of misstatements that are relevant for audit purposes. I think the answer is C - both misstatements from fraudulent financial reporting and misappropriation of assets are relevant.
upvoted 0 times
...

Save Cancel