SOFE Exam AFE Topic 2 Question 50 Discussion

Actual exam question for SOFE's AFE exam

Question #: 50
Topic #: 2

[All AFE Questions]

Procedures for ensuring that the data used by the loss reserve specialist is completed and accurate due to:

AControls over the preparation of managerial data

BControls over the preparation of accounting estimates

CControls over the preparation of supporting data

DControls over the preparation of assumed alternatives

Show Suggested Answer

Suggested Answer: B

by Ammie at Dec 10, 2022, 05:31 AM

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Shawnda

9 days ago

Haha, Glen's got a point. Maybe the loss reserve specialist is just rolling dice to come up with their estimates. In that case, D would be the right answer! Although I suspect the auditors would frown upon that approach.

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Glen

1 months ago

Wait, hold up. What if the loss reserve specialist just makes up their own 'assumed alternatives' and then uses that as the basis for their analysis? Shouldn't we be concerned about that too? Just a thought.

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Mila

2 days ago

User 2: I agree. It's important to ensure the data used is accurate and reliable.

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Whitley

22 days ago

User 1: That's a good point. We should definitely have controls over the preparation of assumed alternatives.

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Andra

1 months ago

I agree, C is the way to go. Ensuring the accuracy and completeness of the underlying data is key for the loss reserve specialist to do their job effectively.

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Roosevelt

1 months ago

Controls over the preparation of supporting data seems like the most logical choice to me. The data used by the loss reserve specialist needs to be accurate and complete, so having controls in place for that supporting data is crucial.

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Ressie

15 days ago

I think controls over the preparation of accounting estimates could also be important, as those estimates play a significant role in determining the loss reserves.

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Lashaun

25 days ago

I agree, having controls over the preparation of supporting data is essential for ensuring the accuracy of the data used by the loss reserve specialist.

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