SOFE Exam SOFA-CFE Topic 2 Question 98 Discussion

Actual exam question for SOFE's SOFA-CFE exam

Question #: 98
Topic #: 2

What needs to understand and assess this environment and the system of internal controls so it can exercise effective oversight?

AFinancial reporting

BAudit Committee

CInventory control

DBusiness Assessment

Show Suggested Answer

Suggested Answer: D

by Dannette at Sep 13, 2024, 03:25 PM

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Hoa

2 months ago

Wait, there's an 'audit committee'? I thought the auditors just showed up, drank all the coffee, and left a huge bill.

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Jacinta

5 days ago

It's important to have checks and balances in place to protect against fraud and errors.

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Margurite

6 days ago

I didn't realize there was so much involved in the audit process.

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Ettie

7 days ago

They help ensure that the auditors are independent and thorough in their work.

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Denna

8 days ago

Yeah, the audit committee plays a key role in overseeing the audit process.

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Casandra

11 days ago

D) Business Assessment

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Gearldine

16 days ago

C) Inventory control

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Brynn

19 days ago

B) Audit Committee

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Loreen

21 days ago

So, it's not just about the auditors showing up and leaving a bill after all.

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Martin

24 days ago

Yes, the audit committee is responsible for understanding and assessing the environment and internal controls to ensure effective oversight.

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Aleta

25 days ago

I thought the same thing! But apparently, the audit committee plays a key role in overseeing the audit process.

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Stanford

26 days ago

A) Financial reporting

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Noel

28 days ago

D) Business Assessment

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Gregoria

30 days ago

C) Inventory control

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Malissa

1 months ago

B) Audit Committee

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Elly

1 months ago

A) Financial reporting

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Sheridan

2 months ago

Ah, the age-old battle between finance and operations. The audit committee always seems to come out on top though.

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Carin

2 months ago

Business assessment? Sounds like a job for the consultants. The audit committee is where it's at for this one.

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Gilma

1 months ago

Business Assessment

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Deonna

2 months ago

Financial reporting

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Oliva

2 months ago

Audit Committee

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Carolann

3 months ago

But wouldn't Financial reporting also be important for effective oversight?

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Gerri

3 months ago

I agree with Mitsue. The Audit Committee plays a crucial role in overseeing the system of internal controls.

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Kate

3 months ago

I thought the inventory control team was responsible for this. Guess I need to brush up on my corporate governance knowledge.

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Mike

2 months ago

Yes, they work closely with the inventory control team to ensure accuracy.

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Barrie

2 months ago

The audit committee plays a key role in overseeing the internal controls.

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Darrin

2 months ago

D) Business Assessment

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Jose

2 months ago

C) Inventory control

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Zona

2 months ago

B) Audit Committee

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Dorethea

2 months ago

A) Financial reporting

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Pamela

3 months ago

The audit committee needs to understand and assess the environment and internal controls to provide effective oversight. B is the correct answer.

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Mitsue

3 months ago

I think the Audit Committee needs to understand and assess the environment and internal controls.

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