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

Cherelle

27 days ago

Option D? Really? That's like a doctor saying 'Neither broken bones nor internal bleeding are relevant to my consideration of the patient's injuries.' Ridiculous!

upvoted 0 times

...

Eden

1 months ago

I'm with the group on this one. Covering all the bases when it comes to fraud is crucial for the auditor. They can't just pick and choose which types of misstatements to look at.

upvoted 0 times

Pete

4 days ago

C) Both A & B

upvoted 0 times

...

Yun

5 days ago

B) misstatements arising from misappropriations of assets

upvoted 0 times

...

Oretha

13 days ago

A) misstatements arising from fraudulent financial reporting

upvoted 0 times

...

Cherry

13 days ago

A) misstatements arising from fraudulent financial reporting

upvoted 0 times

...

Shala

1 months ago

Haha, this is a no-brainer! If the auditor isn't considering both A and B, they might as well be wearing a clown nose and juggling while they do the audit.

upvoted 0 times

Veronica

17 days ago

User 3: Absolutely, the auditor's job is to ensure the financial statements are free from material misstatements, including those related to fraud.

upvoted 0 times

...

Herminia

29 days ago

User 2: Agreed, it's crucial for auditors to be aware of all potential fraud risks.

upvoted 0 times

...

Layla

1 months ago

User 1: Definitely C) Both A & B. Can't have a proper audit without considering both types of misstatements.

upvoted 0 times

...

Fallon

2 months 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

Mozell

23 days ago

Agreed, it's crucial for the auditor to be thorough in their evaluation of potential fraud risks.

upvoted 0 times

...

Gail

1 months ago

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

...

Caprice

1 months ago

Yes, misstatements arising from fraudulent financial reporting and misappropriations of assets are important to consider.

upvoted 0 times

...

Sabra

2 months ago

I think the types of misstatements relevant to the auditor's consideration of fraud are both A & B.

upvoted 0 times

...

Antonio

2 months ago

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

upvoted 0 times

...

Paola

2 months ago

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

upvoted 0 times

...

Salena

2 months ago

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

upvoted 0 times

...

Dorethea

2 months 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

Jodi

1 months ago

Yes, it's important for auditors to consider both fraudulent financial reporting and misappropriation of assets when assessing the risk of fraud in financial statements.

upvoted 0 times

...