SOFE SOFA-CFE Exam - Topic 5 Question 8 Discussion

Actual exam question for SOFE's SOFA-CFE exam

Question #: 8
Topic #: 5

Judgments about the risk of material misstatement due to fraud have an overall effect on how the audit is concluded in what ways?

AAssignment of personnel and supervision

BAccounting principles

CPredictability of auditing procedures

DAll of the above

Show Suggested Answer

Suggested Answer: D

by Ma at May 07, 2022, 04:11 AM

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Gertude

4 months ago

Accounting principles? Not so sure about that one.

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Annelle

4 months ago

Predictability of auditing procedures is key, for sure!

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Cathern

4 months ago

Really? All of the above? Seems like a stretch.

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Stephanie

4 months ago

I think it impacts all aspects, so D is the way to go!

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Alesia

4 months ago

Definitely affects assignment of personnel and supervision.

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Deonna

5 months ago

I recall that higher fraud risk means more supervision is needed, which makes me lean towards A, but I wonder if D could also be correct.

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Dorethea

5 months ago

I'm a bit uncertain about how predictability of auditing procedures ties into fraud risk. It feels like it could be important, though.

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Lazaro

5 months ago

I think we practiced a question similar to this where all options were relevant, so maybe D is the right choice?

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Nada

5 months ago

I remember we discussed how the risk of material misstatement affects the assignment of personnel, but I'm not sure if it impacts accounting principles directly.

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Luisa

5 months ago

Hmm, I'm a bit unsure about this one. I'll need to think it through carefully before selecting an answer.

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Eileen

5 months ago

Whoa, this is a tough one. I remember learning about insider threats in class, but I can't recall the exact percentage. I'll have to guess and go with C, 50%.

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Belen

5 months ago

Hmm, I'm a bit unsure here. I think communicating the potential impact to the application owner might be the safest first step, but I'm not totally confident.

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