SOFE Exam SOFA-CFE Topic 6 Question 84 Discussion

Actual exam question for SOFE's Certified Financial Examiner exam

Question #: 84
Topic #: 6

[All Certified Financial Examiner 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 Alex at Apr 12, 2024, 11:29 AM

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Diane

12 days ago

I'm with you all on this. But you know, if I were the examiner, I might try to throw in a tricky one like 'Neither A nor B' just to see who's really paying attention!

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Exactly! The auditor's main focus is on identifying any intentional or fraudulent misstatements, as those pose a much greater risk to the financial statements. Unintentional errors are still important, but they're not the primary concern.

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Katina

14 days ago

That's a fair point, Layla. But I think the key distinction here is that the question is specifically about misstatements that are 'considered relevant for audit purposes.' Honest mistakes, while important, are often easier to identify and correct.

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Layla

15 days ago

Hmm, I'm not so sure. What about misstatements that arise from honest mistakes or oversights? Shouldn't those be considered relevant as well?

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Alecia

17 days ago

I agree with Cristy. These two types of misstatements are the core focus of an audit, as they can significantly impact the financial statements. Ignoring either of these would be a major oversight.

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Cristy

19 days ago

This is a great question! Clearly, the examiner is trying to test our understanding of the types of misstatements that are relevant for audit purposes. I think the answer is C - both misstatements from fraudulent financial reporting and misappropriation of assets are relevant.

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SOFE Exam SOFA-CFE Topic 6 Question 84 Discussion

Contribute your Thoughts:

Diane

Mitsue

Katina

Layla

Alecia

Cristy