SOFE Exam SOFA-CFE Topic 6 Question 90 Discussion

Actual exam question for SOFE's SOFA-CFE exam

Question #: 90
Topic #: 6

[All SOFA-CFE Questions]

Which type of misstatements are considered relevant fro audit purpose?

AMisstatements arising from fraudulent financial reporting

BMisstatements arising from misappropriation of assets

CBoth A and B

DNeither A nor B

Show Suggested Answer

Suggested Answer: C

by Bette at Jun 21, 2024, 09:51 AM

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Rana

4 months ago

Hmm, I'm going to have to go with 'C' on this one. I mean, who would even think that auditors wouldn't care about both financial fraud and asset theft? That's like the whole point of an audit!

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Catrice

2 months ago

I think 'C' is the right choice here, auditors can't afford to overlook either type of misstatement.

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Chanel

2 months ago

It's crucial for auditors to address both A and B to ensure the accuracy of financial statements.

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Kenneth

3 months ago

Definitely, auditors need to be on the lookout for both types of misstatements.

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Michal

3 months ago

I agree, both financial fraud and asset theft are important for auditors to consider.

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Carol

4 months ago

I don't know, guys. I feel like this is a trick question. What if the answer is actually 'Neither A nor B' and the auditors are supposed to look for something even shadier?

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Jamal

4 months ago

Wow, talk about a softball question. If you can't nail this one, you might as well just hand in a blank exam and save everyone the trouble.

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Sharen

2 months ago

I think it's C) Both A and B because both types of misstatements are relevant for audit purposes.

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Carisa

3 months ago

C) Both A and B

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Ryan

3 months ago

A) Misstatements arising from fraudulent financial reporting

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Tashia

3 months ago

C) Both A and B

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Anglea

3 months ago

B) Misstatements arising from misappropriation of assets

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Rickie

4 months ago

A) Misstatements arising from fraudulent financial reporting

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Kiera

4 months ago

C) Both A and B

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Javier

4 months ago

A) Misstatements arising from fraudulent financial reporting

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Effie

4 months ago

I see your point, but I still think only misstatements from fraudulent financial reporting are truly relevant for audit purposes.

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Aileen

5 months ago

But what about misstatements arising from misappropriation of assets? Don't you think those are important too?

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Effie

5 months ago

I disagree, I believe only misstatements arising from fraudulent financial reporting are relevant.

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Matthew

5 months ago

Honestly, if you can't figure out that options A and B are the correct answers, you might want to consider a career change. Auditing is clearly not your forte.

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Yolande

5 months ago

I mean, come on, it's not rocket science. If the auditors aren't looking at both financial shenanigans and physical asset theft, they're not doing their job properly.

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Jillian

4 months ago

C) Both A and B

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Jeannine

4 months ago

B) Misstatements arising from misappropriation of assets

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Lura

5 months ago

A) Misstatements arising from fraudulent financial reporting

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Aileen

5 months ago

I think the relevant misstatements for audit purpose are both A and B.

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Alline

5 months ago

Well, duh! Of course both fraudulent financial reporting and asset misappropriation are relevant for audit purposes. You can't just ignore half the shady stuff companies try to pull.

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Misty

4 months ago

C) Both A and B

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Barabara

4 months ago

B) Misstatements arising from misappropriation of assets

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Charlena

4 months ago

A) Misstatements arising from fraudulent financial reporting

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