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SOFE SOFA-CFE Exam - Topic 8 Question 55 Discussion

Posted by Jacqueline on Jul 25, 2022 at 10:35 PM

A technique for analyzing the percentage change in individual financial statement items from one year to the next in known as:

Suggested Answer: B

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12 comments · newest first
WA
Wade 11 months ago
Surprised to see Fraction analysis as an option!
CR
Crista 11 months ago
I thought it was called Ratio analysis?
LA
Lashaunda 12 months ago
Wait, is it really just for year-to-year changes?
VI
Vincent 12 months ago
Agreed, that's the right term!
AN
Angella 12 months ago
It's definitely Horizontal analysis!
RO
Rosamond 1 year ago
I feel like horizontal analysis is the right term here, but I keep mixing it up with vertical analysis.
MO
Monte 1 year ago
I’m a bit confused; I thought ratio analysis was used for comparing financial ratios, not percentage changes year over year.
KR
Kristeen 1 year ago
I remember practicing a question like this, and I think vertical analysis is more about comparing items in a single period, right?
KI
Kizzy 1 year ago
I think the answer might be horizontal analysis since it deals with changes over time, but I'm not completely sure.
SH
Shayne 1 year ago
Root cause analysis seems like the most relevant technique here. That's what we've been focusing on in class for identifying the underlying causes of issues.
PO
Pok 1 year ago
Whoa, this is a tough one. I'm a bit confused by all the different scenarios and configurations mentioned. I'll need to take my time and really think through each option to make sure I understand what's being asked.
MA
Maira 1 year ago
I'm pretty confident the answer is A. The syslog.log file is where I'd expect to find system-level errors and messages that could help identify the root cause of this "unknown error code" during authentication.
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