SOFE Exam SOFA-CFE Topic 7 Question 94 Discussion

Actual exam question for SOFE's SOFA-CFE exam

Question #: 94
Topic #: 7

[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 Portia at Aug 07, 2024, 10:58 AM

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Novella

2 months ago

I think misstatements from misappropriation of assets are not relevant for audit purposes.

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Luisa

2 months ago

I believe only misstatements from fraudulent financial reporting are relevant for audit purposes.

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Son

2 months ago

I agree with Anglea, misstatements from both fraudulent financial reporting and misappropriation of assets should be considered.

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Anglea

2 months ago

I think both A and B are relevant for audit purposes.

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Veronika

2 months ago

I think misstatements from neither fraudulent financial reporting nor misappropriation of assets are relevant for audit.

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Kayleigh

2 months ago

I believe misstatements from fraudulent financial reporting are more relevant for audit than misappropriation of assets.

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Tina

3 months ago

Clearly C is the way to go. Although, I'm curious if the auditor gets a bonus for finding both types of misstatements. Better cover all the bases!

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Lili

2 months ago

I don't think auditors get a bonus for finding misstatements, but it's definitely their job to uncover all potential issues.

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Derick

2 months ago

I agree, covering both types of misstatements is important for a thorough audit.

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King

3 months ago

I agree with Tish, misstatements from both fraudulent financial reporting and misappropriation of assets are important for audit.

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Annice

3 months ago

Hmm, I'm torn between A and C. But hey, at least they didn't throw in a 'None of the above' option. That would really throw us for a loop!

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Arleen

2 months ago

C) Both A and B

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Ressie

2 months ago

B) Misstatements arising from misappropriation of assets

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Felicitas

2 months ago

A) Misstatements arising from fraudulent financial reporting

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Margret

3 months ago

I'm going with D. Neither A nor B, because the real answer is 'All of the above and then some'. Auditors love finding every possible mistake!

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Gail

2 months ago

D) Neither A nor B

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Sheridan

2 months ago

C) Both A and B

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Lauran

3 months ago

B) Misstatements arising from misappropriation of assets

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Bo

3 months ago

A) Misstatements arising from fraudulent financial reporting

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Marcos

3 months ago

Duh, it's obviously C. Misstatements from fraud and asset misappropriation are like the bread and butter of auditing.

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Jaime

3 months ago

Of course, both A and B are relevant for audit purposes. Can't believe this is even a question!

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Rolland

3 months ago

B) Misstatements arising from misappropriation of assets

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Bettina

3 months ago

A) Misstatements arising from fraudulent financial reporting

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Tish

3 months ago

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

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