35.  Under the Private Securities Litigation Reform Act (PSLRA), recklessness is defined as:

45.  Which of the following procedures would not be useful when assessing the appropriateness of management’s conclusion that the legal isolation criterion (i.e., bankruptcy remoteness) has been met for a transfer of financial assets?

47.  The Sarbanes-Oxley Act of 2002 included a provision in its Section 704 that required the SEC to study the causes of past alleged audit failures.  Which of the following causes of alleged audit failures was not included in the summary of Section 704 findings presented during this course?

31.  Indicate which of the following statements is/are appropriate justification(s) for why all audit procedures are risk assessment procedures.

37.  In the Campbell Soup Company case, one of the schemes used by Campbell was “guaranteed sales” at the end of the accounting period.  Which of the following audit procedures would most likely provide the strongest audit evidence about the valuation assertion pertaining to guaranteed sales?

10.  Fraud risk factors (e.g., red flags) are facts, circumstances or other information that suggest the risk of a material unintentional financial statement error may be elevated.

6.  Remediation of Control Deficiencies is one of the five components of internal control over financial reporting included in the COSO Internal Control – Integrated Framework.

42.  In an integrated audit, a direct (i.e., not inverse) relationship exists between the degree of risk that a material weakness could exist in a particular area of internal control over financial reporting and the:

26.  Which of the following items is not a provision of the Private Securities Litigation Reform Act (PSLRA) of 1995?

17.  When the auditor concludes the design of a control related to an assertion is not effective, he or she normally would increase the extent of tests of the operating effectiveness of that control.