American Bankers Association Exam CTFA Topic 4 Question 82 Discussion

Actual exam question for American Bankers Association's CTFA exam

Question #: 82
Topic #: 4

[All CTFA 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 Jutta at Dec 05, 2024, 07:06 AM

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Edwin

2 months ago

Hah, this is a no-brainer! Of course it's C. Auditors have to be on the lookout for both types of misstatements, or else they might as well just hand out free money to the fraud enthusiasts. Gotta stay vigilant, folks!

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Gaynell

15 days ago

Being vigilant and considering all possibilities is key in ensuring the integrity of financial reporting.

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Letha

22 days ago

It's crucial for auditors to be thorough in their examination to detect any potential fraud in financial statements.

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Mozell

1 months ago

Absolutely, misstatements from fraudulent financial reporting and misappropriations of assets are both important to consider in an audit.

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Charlene

1 months ago

I agree, it's definitely C. Auditors need to consider both types of misstatements to ensure the financial statements are accurate.

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Daniela

2 months ago

C is the way to go! Auditors need to keep an eye out for any kind of funny business, whether it's cooking the books or light-fingered employees. Gotta catch 'em all, like a financial Pokémon master!

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Omega

1 months ago

Definitely, auditors play a crucial role in detecting and preventing fraud in financial statements. It's all about maintaining integrity and accuracy in the numbers.

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Alecia

1 months ago

Yes, misstatements arising from fraudulent financial reporting and misappropriations of assets are both important to consider. Can't let anything slip through the cracks.

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Murray

2 months ago

C is the way to go! Auditors need to keep an eye out for any kind of funny business, whether it's cooking the books or light-fingered employees. Gotta catch 'em all, like a financial Pokémon master!

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Micheline

3 months ago

Ooh, this one's tricky! I'm gonna have to go with C as well. Can't forget about those sneaky asset misappropriations, they're just as important as the financial reporting shenanigans.

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Annamae

1 months ago

It's definitely important for auditors to be aware of both types of misstatements to ensure the integrity of the financial statements.

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Flo

2 months ago

Yeah, misstatements from fraudulent financial reporting and misappropriations of assets can both impact the accuracy of the financial statements.

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Jamal

2 months ago

I think it's C too. Both types of misstatements are crucial for the auditor to consider.

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Yolando

3 months ago

Hmm, let's see... I think the answer has to be C. It just makes sense that both fraudulent financial reporting and asset misappropriation would be relevant to the auditor's consideration of fraud. Gotta cover all the bases, you know?

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