Deal of The Day! Hurry Up, Grab the Special Discount - Save 25% - Ends In 00:00:00 Coupon code: SAVE25
Welcome to Pass4Success

- Free Preparation Discussions
Mail Us support@pass4success.com
Location US
Mob_nav_barsMENU

SOFE AFE Exam - Topic 4 Question 117 Discussion

Which of the following may NOT involve a high degree of management judgment and subjectivity and may present risks of material misstatement due to fraud?
D) key estimates
A) Investments
B) Deferred acquisition costs
C) Reinsurance

SOFE AFE Exam - Topic 4 Question 117 Discussion

Actual exam question for SOFE's AFE exam
Question #: 117
Topic #: 4
[All AFE Questions]

Which of the following may NOT involve a high degree of management judgment and subjectivity and may present risks of material misstatement due to fraud?

Show Suggested Answer Hide Answer
Suggested Answer: D

by Malika at Jun 28, 2026, 04:55 AM

Limited Time Offer

25%

Off

Get Premium AFE Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

0/2000 characters
Submit Cancel
Jeffrey
Key estimates definitely require a lot of subjectivity, so I’m leaning towards deferred acquisition costs as the answer, but I need to double-check my notes.
upvoted 0 times
...
Cassi
5 days ago
Reinsurance seems like it would definitely involve management judgment, but I’m not confident about how it compares to the others.
upvoted 0 times
...
Cassi
10 days ago
I remember discussing deferred acquisition costs in class, and I think they can be pretty straightforward, but I could be wrong.
upvoted 0 times
...
Donette
15 days ago
I think investments might involve a lot of judgment, especially with market fluctuations, but I'm not entirely sure.
upvoted 0 times
...

Save Cancel