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SOFE AFE Exam - Topic 2 Question 89 Discussion

Actual exam question for SOFE's AFE exam
Question #: 89
Topic #: 2
[All AFE Questions]

Which are the types of misstatements relevant to the auditor's consideration of fraud in a financial statement audit?

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Suggested Answer: B

by Carlota at Sep 17, 2024, 06:54 PM

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Shonda
3 months ago
I’m not convinced about B, seems like a stretch.
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Keith
3 months ago
Totally agree, it’s both A & B for sure.
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Carissa
3 months ago
Wait, are both really relevant? That’s surprising!
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Gilberto
4 months ago
I think it’s just A, misappropriations seem less common.
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Nieves
4 months ago
Definitely A and B, both are crucial!
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Roxanne
4 months ago
I’m a bit confused; I thought misstatements from asset misappropriation were less common in audits. Is that right?
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Amber
4 months ago
I practiced a similar question, and I believe the answer is C because both types of misstatements can indicate fraud.
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Joanne
4 months ago
I recall that fraudulent financial reporting is a big concern, but I also remember something about asset misappropriation being significant too.
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Hershel
5 months ago
I think both types of misstatements are relevant, but I'm not entirely sure if I remember the definitions correctly.
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Mike
5 months 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.
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Barrie
5 months 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.
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Ashleigh
5 months 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.
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Cyril
5 months 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.
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Cherelle
9 months 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!
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Eden
9 months 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.
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Rebecka
8 months ago
C) Both A & B
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Georgene
8 months ago
I agree, the auditor needs to consider all types of misstatements to effectively detect fraud.
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Matilda
8 months ago
B) misstatements arising from misappropriations of assets
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Pete
8 months ago
C) Both A & B
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Yun
8 months ago
B) misstatements arising from misappropriations of assets
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Oretha
9 months ago
A) misstatements arising from fraudulent financial reporting
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Cherry
9 months ago
A) misstatements arising from fraudulent financial reporting
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Shala
10 months 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.
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Veronica
9 months ago
User 3: Absolutely, the auditor's job is to ensure the financial statements are free from material misstatements, including those related to fraud.
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Herminia
9 months ago
User 2: Agreed, it's crucial for auditors to be aware of all potential fraud risks.
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Layla
9 months ago
User 1: Definitely C) Both A & B. Can't have a proper audit without considering both types of misstatements.
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Fallon
10 months 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.
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Mozell
9 months ago
Agreed, it's crucial for the auditor to be thorough in their evaluation of potential fraud risks.
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Gail
10 months ago
The auditor needs to be aware of both types of misstatements to properly assess the risk of fraud in the financial statements.
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Caprice
10 months ago
Yes, misstatements arising from fraudulent financial reporting and misappropriations of assets are important to consider.
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Sabra
10 months ago
I think the types of misstatements relevant to the auditor's consideration of fraud are both A & B.
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Antonio
10 months ago
I'm not sure, but I think misstatements relevant to fraud can also include misappropriations of assets.
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Paola
10 months ago
I agree with Salena, misstatements can arise from both fraudulent financial reporting and misappropriations of assets.
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Salena
10 months ago
I think the types of misstatements relevant to fraud are both A & B.
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Dorethea
11 months 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.
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Jodi
9 months 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.
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Lottie
10 months ago
I agree, option C covers both types of misstatements that are relevant to the auditor's consideration of fraud.
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Trina
11 months ago
I'm not sure, but I think misstatements relevant to fraud can also include neither A nor B.
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Shay
11 months ago
I agree with Cecil, misstatements can arise from both fraudulent financial reporting and misappropriations of assets.
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Cecil
11 months ago
I think the types of misstatements relevant to fraud are both A & B.
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