SOFE AFE Exam - Topic 4 Question 105 Discussion

Actual exam question for SOFE's AFE exam

Question #: 105
Topic #: 4

Direct serving loans method requires a system of good internal control and requires that the functions be split between the Accounting Department and the Investment Department. In such a case the Accounting Department is responsible for all of the following EXCEPT:

ASupplying the Investment Department with correct data and reports that summarize all loan transactions

BAlerting the Investment Department promptly whenever an exception to the normal processing routine occurs

CThe design, maintenance, and accuracy of accounting records, for periodic management and exception reports, and for statutory statement preparation

DIts records may or may not provide the needed data to support this reporting function

Show Suggested Answer

Suggested Answer: D

by Shawna at Nov 24, 2025, 01:36 PM

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Aleshia

1 month ago

Good point! D doesn't fit the control system.

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Carolann

1 month ago

A, B, and C are clear duties.

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Francoise

2 months ago

I agree, D seems off.

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Cassandra

2 months ago

Because it says "may or may not" which isn't a responsibility.

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Isaac

2 months ago

Why D?

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Cassandra

2 months ago

I think D is the right answer.

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Adria

2 months ago

I thought accounting always had to maintain accurate records?

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Lucina

2 months ago

A, B, and C are all clear responsibilities.

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Ressie

3 months ago

Wait, how can records not support reporting? That seems off.

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Jeannine

3 months ago

Totally agree, D doesn't fit with the other options.

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Lemuel

3 months ago

D is the correct answer. Accounting should provide accurate data.

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Domitila

4 months ago

Haha, the Accounting Department is like the parent who has to do all the paperwork while the Investment Department is the kid who gets to play with the cool toys.

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Daryl

4 months ago

I'm going to go with C. The Accounting Department is like the boring older sibling, while the Investment Department is the cool, rebellious one.

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Lavonne

4 months ago

D is the correct answer. The Accounting Department's records may or may not provide the needed data to support this reporting function.

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Melodie

4 months ago

I'm pretty sure the answer is C. The Accounting Department handles all the boring stuff, while the Investment Department gets to have all the fun.

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Jamey

4 months ago

C is the correct answer. The Accounting Department is responsible for everything except the design, maintenance, and accuracy of accounting records.

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Marti

4 months ago

I recall that the Accounting Department is crucial for reporting, so D seems like the odd one out since it implies a lack of support for reporting functions.

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Heidy

5 months ago

I’m not entirely sure, but I think all the other options seem like responsibilities of the Accounting Department. D sounds off to me.

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Aileen

5 months ago

I've got a good strategy for this. I'll start by identifying the core responsibilities of the Accounting Department, then eliminate the options that don't fit. That should leave me with the one thing they're not responsible for. I think I can nail this!

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Danilo

5 months ago

Alright, this is a tricky one. The key is figuring out which responsibility the Accounting Department is NOT responsible for. I'll need to really focus on the wording of each option to spot the odd one out.

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Owen

5 months ago

I feel like I’ve seen a similar question before, and it emphasized the importance of accurate records. So, I’m leaning towards D being the exception here.

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Son

5 months ago

I remember that the Accounting Department has to provide accurate data, so I think option D might be the right answer since it suggests uncertainty.

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Lashaunda

5 months ago

This question is tricky.

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Jamal

6 months ago

Ugh, I'm a bit confused by this question. The direct serving loans method and the split of responsibilities between departments isn't something I feel super confident about. I'll need to think this through carefully and maybe even guess if I can't figure it out.

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Denny

6 months ago

Okay, let me think this through. The Accounting Department is responsible for a lot of the key functions, but there's one exception they're not responsible for. I just need to carefully read through the options and identify which one it is.

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Delsie

6 months ago

Hmm, this question seems to be testing our understanding of the responsibilities of the Accounting Department in a direct serving loans method. I think I have a good grasp of the concepts, so I'll try to break this down.

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