SOFE Exam AFE Topic 2 Question 50 Discussion

Actual exam question for SOFE's AFE exam

Question #: 50
Topic #: 2

[All AFE Questions]

Procedures for ensuring that the data used by the loss reserve specialist is completed and accurate due to:

AControls over the preparation of managerial data

BControls over the preparation of accounting estimates

CControls over the preparation of supporting data

DControls over the preparation of assumed alternatives

Show Suggested Answer

Suggested Answer: B

by Ammie at Dec 10, 2022, 05:31 AM

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Shawnda

2 months ago

Haha, Glen's got a point. Maybe the loss reserve specialist is just rolling dice to come up with their estimates. In that case, D would be the right answer! Although I suspect the auditors would frown upon that approach.

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Roy

20 days ago

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Laquanda

27 days ago

C) Controls over the preparation of supporting data

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Wilbert

1 months ago

B) Controls over the preparation of accounting estimates

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Lorrine

1 months ago

A) Controls over the preparation of managerial data

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Glen

3 months ago

Wait, hold up. What if the loss reserve specialist just makes up their own 'assumed alternatives' and then uses that as the basis for their analysis? Shouldn't we be concerned about that too? Just a thought.

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Charlette

1 months ago

D) Controls over the preparation of assumed alternatives

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Devon

1 months ago

That's a valid concern. Maybe there should be controls over the preparation of assumed alternatives as well.

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Natalie

1 months ago

C) Controls over the preparation of supporting data

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German

1 months ago

B) Controls over the preparation of accounting estimates

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Shaun

1 months ago

A) Controls over the preparation of managerial data

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Billye

1 months ago

Mila: Absolutely, all aspects of data preparation should be closely monitored to avoid any inaccuracies.

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Daniela

2 months ago

User 3: Controls over the preparation of supporting data are also crucial for the loss reserve specialist.

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Mila

2 months ago

User 2: I agree. It's important to ensure the data used is accurate and reliable.

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Whitley

3 months ago

User 1: That's a good point. We should definitely have controls over the preparation of assumed alternatives.

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Andra

3 months ago

I agree, C is the way to go. Ensuring the accuracy and completeness of the underlying data is key for the loss reserve specialist to do their job effectively.

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Roosevelt

3 months ago

Controls over the preparation of supporting data seems like the most logical choice to me. The data used by the loss reserve specialist needs to be accurate and complete, so having controls in place for that supporting data is crucial.

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Ressie

2 months ago

I think controls over the preparation of accounting estimates could also be important, as those estimates play a significant role in determining the loss reserves.

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Lashaun

3 months ago

I agree, having controls over the preparation of supporting data is essential for ensuring the accuracy of the data used by the loss reserve specialist.

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