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SOFE Exam SOFA-CFE Topic 6 Question 84 Discussion

Actual exam question for SOFE's Certified Financial Examiner exam
Question #: 84
Topic #: 6
[All Certified Financial Examiner Questions]

Which type of misstatements are considered relevant fro audit purpose?

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Suggested Answer: C

by Alex at Apr 12, 2024, 11:29 AM

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Diane
8 days ago
I'm with you all on this. But you know, if I were the examiner, I might try to throw in a tricky one like 'Neither A nor B' just to see who's really paying attention!
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Mitsue
10 days ago
Exactly! The auditor's main focus is on identifying any intentional or fraudulent misstatements, as those pose a much greater risk to the financial statements. Unintentional errors are still important, but they're not the primary concern.
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Katina
11 days ago
That's a fair point, Layla. But I think the key distinction here is that the question is specifically about misstatements that are 'considered relevant for audit purposes.' Honest mistakes, while important, are often easier to identify and correct.
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Layla
12 days ago
Hmm, I'm not so sure. What about misstatements that arise from honest mistakes or oversights? Shouldn't those be considered relevant as well?
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Alecia
14 days ago
I agree with Cristy. These two types of misstatements are the core focus of an audit, as they can significantly impact the financial statements. Ignoring either of these would be a major oversight.
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Cristy
16 days ago
This is a great question! Clearly, the examiner is trying to test our understanding of the types of misstatements that are relevant for audit purposes. I think the answer is C - both misstatements from fraudulent financial reporting and misappropriation of assets are relevant.
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