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

Limited Time Offer

25%

Off

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

Contribute your Thoughts:

Submit Cancel

Fallon

6 days ago

I agree with Dorethea. The auditor needs to be aware of both types of misstatements to properly assess the risk of fraud in the financial statements.

upvoted 0 times

...

Antonio

8 days ago

I'm not sure, but I think misstatements relevant to fraud can also include misappropriations of assets.

upvoted 0 times

...

Paola

10 days ago

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

upvoted 0 times

...

Salena

12 days ago

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

upvoted 0 times

...

Dorethea

14 days 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.

upvoted 0 times

...

Trina

17 days ago

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

upvoted 0 times

...

Shay

24 days ago

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

upvoted 0 times

...

Cecil

25 days ago

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

upvoted 0 times

...