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Which are the types of misstatements relevant to the auditor's consideration of fraud in a financial statement audit?
Suggested Answer: B
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40 comments · newest first
SH
Shonda
10 months ago
I’m not convinced about B, seems like a stretch.
KE
Keith
11 months ago
Totally agree, it’s both A & B for sure.
CA
Carissa
11 months ago
Wait, are both really relevant? That’s surprising!
GI
Gilberto
11 months ago
I think it’s just A, misappropriations seem less common.
NI
Nieves
11 months ago
Definitely A and B, both are crucial!
RO
Roxanne
12 months ago
I’m a bit confused; I thought misstatements from asset misappropriation were less common in audits. Is that right?
AM
Amber
12 months ago
I practiced a similar question, and I believe the answer is C because both types of misstatements can indicate fraud.
JO
Joanne
12 months ago
I recall that fraudulent financial reporting is a big concern, but I also remember something about asset misappropriation being significant too.
HE
Hershel
1 year ago
I think both types of misstatements are relevant, but I'm not entirely sure if I remember the definitions correctly.
MI
Mike
1 year ago
I'm a little confused by this question. I know the auditor has to look for fraud, but I'm not sure if there are other types of misstatements they need to consider. I'll have to review my notes on this topic before answering.
BA
Barrie
1 year ago
Okay, I've got this. The auditor needs to consider both misstatements arising from fraudulent financial reporting and misstatements arising from misappropriation of assets. The answer is C, both A and B.
AS
Ashleigh
1 year ago
Hmm, I'm a bit unsure about this one. I know the auditor needs to consider fraud, but I can't quite remember the specific types of misstatements. Let me think this through carefully.
CY
Cyril
1 year ago
This is a straightforward question on the types of misstatements relevant to fraud in a financial statement audit. I'm confident I can answer this correctly.
CH
Cherelle
1 year ago
Option D? Really? That's like a doctor saying 'Neither broken bones nor internal bleeding are relevant to my consideration of the patient's injuries.' Ridiculous!
ED
Eden
1 year ago
I'm with the group on this one. Covering all the bases when it comes to fraud is crucial for the auditor. They can't just pick and choose which types of misstatements to look at.
RE
Rebecka
1 year ago
C) Both A & B
GE
Georgene
1 year ago
I agree, the auditor needs to consider all types of misstatements to effectively detect fraud.
MA
Matilda
1 year ago
B) misstatements arising from misappropriations of assets
PE
Pete
1 year ago
C) Both A & B
YU
Yun
1 year ago
B) misstatements arising from misappropriations of assets
OR
Oretha
1 year ago
A) misstatements arising from fraudulent financial reporting
CH
Cherry
1 year ago
A) misstatements arising from fraudulent financial reporting
SH
Shala
1 year ago
Haha, this is a no-brainer! If the auditor isn't considering both A and B, they might as well be wearing a clown nose and juggling while they do the audit.
VE
Veronica
1 year ago
User 3: Absolutely, the auditor's job is to ensure the financial statements are free from material misstatements, including those related to fraud.
HE
Herminia
1 year ago
User 2: Agreed, it's crucial for auditors to be aware of all potential fraud risks.
LA
Layla
1 year ago
User 1: Definitely C) Both A & B. Can't have a proper audit without considering both types of misstatements.
FA
Fallon
1 year ago
I agree with Dorethea. The auditor needs to be aware of both types of misstatements to properly assess the risk of fraud in the financial statements.
MO
Mozell
1 year ago
Agreed, it's crucial for the auditor to be thorough in their evaluation of potential fraud risks.
GA
Gail
1 year ago
The auditor needs to be aware of both types of misstatements to properly assess the risk of fraud in the financial statements.
CA
Caprice
1 year ago
Yes, misstatements arising from fraudulent financial reporting and misappropriations of assets are important to consider.
SA
Sabra
1 year ago
I think the types of misstatements relevant to the auditor's consideration of fraud are both A & B.
AN
Antonio
1 year ago
I'm not sure, but I think misstatements relevant to fraud can also include misappropriations of assets.
PA
Paola
1 year ago
I agree with Salena, misstatements can arise from both fraudulent financial reporting and misappropriations of assets.
SA
Salena
1 year ago
I think the types of misstatements relevant to fraud are both A & B.
DO
Dorethea
2 years ago
Option C seems like the obvious choice here. Both fraudulent financial reporting and misappropriation of assets are definitely relevant to an auditor's consideration of fraud.
JO
Jodi
1 year ago
Yes, it's important for auditors to consider both fraudulent financial reporting and misappropriation of assets when assessing the risk of fraud in financial statements.
LO
Lottie
1 year ago
I agree, option C covers both types of misstatements that are relevant to the auditor's consideration of fraud.
TR
Trina
2 years ago
I'm not sure, but I think misstatements relevant to fraud can also include neither A nor B.
SH
Shay
2 years ago
I agree with Cecil, misstatements can arise from both fraudulent financial reporting and misappropriations of assets.
CE
Cecil
2 years ago
I think the types of misstatements relevant to fraud are both A & B.