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ACFE CFE Exam - Topic 3 Question 23 Discussion

Persuasive evidence of an arrangement does not exist when:
B) No written or verbal agreement exists.
A) Revenue and corresponding expenses doesn't match each other.
C) Timings not meet properly
D) Capitalized expenses and Liabilities will not be up to satisfied level

ACFE CFE Exam - Topic 3 Question 23 Discussion

Actual exam question for ACFE's CFE exam
Question #: 23
Topic #: 3
[All CFE Questions]

Persuasive evidence of an arrangement does not exist when:

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Suggested Answer: B

by Alecia at Aug 23, 2022, 11:06 AM

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Chana
9 months ago
D seems a bit off, how can capitalized expenses not meet satisfaction?
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Scarlet
9 months ago
Totally agree with B, without an agreement, it's just speculation.
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Danilo
9 months ago
Wait, are we sure about C? Timings can be tricky.
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Melissia
9 months ago
I think A is also a big factor, they should match!
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Myra
9 months ago
B is definitely true, no agreement means no arrangement.
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Dyan
9 months ago
Option C seems a bit vague to me. I don't recall timings being a major factor in proving arrangements, but I could be wrong.
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Erick
9 months ago
I feel like I've seen a question similar to this before, and it was about written agreements being crucial. So, I might lean towards B as well.
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Layla
9 months ago
I'm not entirely sure, but I remember something about matching revenue and expenses being important. Could that relate to option A?
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Thora
10 months ago
I think option B makes the most sense since without any agreement, how can there be evidence of an arrangement?
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Elin
10 months ago
I think the purpose of a secondary control is to partially reduce the residual risk level when a key control doesn't work effectively. That's what option B says, and it makes the most sense to me.
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Alpha
10 months ago
I feel confident about this question. Mature processes likely lead to more efficient, predictable work environments, which should boost satisfaction.
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Margurite
10 months ago
This question seems straightforward, I'm pretty confident I know the answer.
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Huey
10 months ago
This seems like a pretty straightforward question. I'll focus on the key concepts of capacity and management priorities.
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Bobbye
10 months ago
Okay, I've got this. A quota is the maximum amount of a product that can be imported, so that's the answer. Easy peasy!
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